Published: Wed, June 20, 2018
Markets | By Otis Pena

Disney increases bid for Murdoch's Fox assets

Disney increases bid for Murdoch's Fox assets

The mouse is chasing the fox. The previous agreement was an all-stock deal, and Comcast's cash offer was seen as a significant enticement.

Comcast, which has lodged a separate £22bn bid to buy Sky, is expected to respond with a sweeter deal as a bidding war hots up over the summer.

21st Century Fox Inc. accepted a sweetened, $71.3-billion bid from Walt Disney Co. for its entertainment assets, outbidding Comcast a battle for one of the media industry's biggest prizes.

The 21st Century Fox logo is displayed outside the News Corporation building in the Manhattan borough of New York City, New York, U.S., June 15, 2018.

This boils down to $38 per share in cash and stock, with Disney taking on $13.8B of Fox's net debt, which would increase the total transaction to $85.1B.

The improved offer came as 21st Century Fox board was set to decide whether to back Comcast's bid for assets that include Fox's film and television studios and global businesses.

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Fox said it will postpone its special shareholders meeting in order to provide stockholders the opportunity to evaluate Disney's amended offer.

Fox could also rebuff Comcast's bid.

"After six months of integration planning we're even more enthusiastic and confident in the strategic fit of the assets and the talent at Fox", said Iger in a statement.

"We remain convinced that the combination of 21CF's iconic assets, brands and franchises with Disney's will create one of the greatest, most innovative companies in the world".

Diversified Private Wealth Advisors President Dominick Tavella and Rosecliff CEO Mike Murphy on Comcast's bid challenging Disney's deal to acquire 21st Century Fox' entertainment assets and the outlook for Federal Reserve policy. Last week, a judge signed off on AT&T's purchase of Time Warner, the parent company of CNN.

Fox said that in light of the new offer tabled by Disney it has concluded that Comcast's bid can not be considered to result in a better deal for shareholders.

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