Fox accepts new Disney bid of US$71 billion, putting Comcast in a tight spot
Disney is bidding for Fox’s entertainment properties, including ‘The Simpsons’, ‘X-Men’ and ‘Deadpool’ – and upped the ante after Comcast bid US$65 billion
Media company 21st Century Fox accepted a sweetened, US$71.3 billion offer from Walt Disney for its entertainment assets, a bid which eclipses Comcast’s in a battle for one of the media industry’s biggest prizes.
The US$38-a-share price is about US$10 a share higher than what Disney offered in December – and US$3 above Comcast’s bid from last week. The new agreement also offers more flexibility and other enhancements than the Comcast offer, Fox said on Wednesday.
At stake is a trove of media properties, ranging from The Simpsons to X-Men and Deadpool that may help fend off the threat from Netflix and other streaming companies. Both Disney and Comcast are looking to use the Fox assets to bolster their content and expand overseas.
Disney’s latest offer is a “very aggressive move” by CEO Robert Iger and may make it difficult for Comcast to respond, said Bloomberg Intelligence analyst Paul Sweeney. Comcast’s current bid was already poised to load the company with debt, and its shares have fallen 18 per cent this year.
“Comcast’s balance sheet may preclude it from bidding much higher,” Sweeney said. “Further hampering Comcast’s ability to respond is its position that it does not want to use its stock in a deal at these low levels.”
Fox shares jumped as much as 6.8 per cent on Wednesday, sending them to a record high. Disney rose about 0.6 per cent in the morning trading session in New York, while shares of Comcast were little changed.
