Disney and Comcast in Bidding War for Fox

by | Jun 20, 2018 | NEWS

Disney and Fox reached an agreement last year which would allow Disney to acquire 21st Century Fox in an all-stock purchase of $52.4 billion. The deal was scheduled to close summer of 2019 pending regulatory approval but has since been challenged by Comcast who has made an all-cash offer of $65 billion.

Besides 21st Century Fox, the sale includes Twentieth Century Fox, Fox Searchlight Pictures, and Fox 2000 film production studios.

Both Disney and Comcast stand to gain significantly in the acquisition. Besides the content – which includes some of the most popular and profitable T.V. and film titles – is a controlling interest in Hulu.

Currently, Hulu is owned by four companies, and Disney, Comcast, and Fox each own thirty percent. Either company is therefore set to take majority ownership with the deal. For Disney, who is working on launching their own streaming service, the boon is a big one.

Fox’s international assets are also a big part of the deal, which would help either company dominate the international media marketplace.

The deal would also give whichever company wins the bidding war access to new material for theme park attractions and merchandise. Comcast owns Universal and the Universal Studios parks, and Disney, of course, has parks all over the world.

Not all of Fox is up for grabs though. The company would maintain its news and sports properties as well as its broadcasting company and television network.

CNBC reported Monday that Disney plans to up its bid in response to Comcast’s grab and to include cash as part of the deal. The details have not been released yet.

Comcast is holding a shareholder meeting today and will discuss Comcast’s offer. If they vote to consider it, Disney will have five days to respond.

Either deal will be subject to regulatory approval.

GET WEEKLY STOCK HIGHLIGHTS