Comcast offers US$65 billion for Fox, creating bidding war with Disney

Comcast’s bid for 21st Century Fox represents a 19 per cent premium over Disney’s previous offer, setting up a bidding war

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A sign is seen outside the Comcast Centre in Philadelphia in 2017. Comcast made a US$65 billion bid on Wednesday for Fox's entertainment businesses, setting up a battle with Disney to become the next mega-media company. Photo: AP

Published: 5:08am, 14 Jun 2018Updated: 5:38am, 14 Jun 2018

Comcast Corp made a long-awaited offer to acquire much of 21st Century Fox Inc, topping a previous proposal by Walt Disney Co and setting up a bidding war for Rupert Murdoch’s media empire.

Comcast, the largest US cable-TV provider, said its cash offer reflects a US$65 billion value for Fox’s entertainment assets. At US$35 a share, the bid represents a 19 per cent premium over the Disney offer, the company said on Wednesday.

The move follows AT&T Inc.’s victory over the Justice Department in its antitrust battle to take over Time Warner Inc. That outcome is expected to spur a wave of media consolidation, emboldening companies to make offers they might otherwise have skipped.

Fox sets date for vote on Disney’s US$52 billion asset purchase

Disney and Comcast are locked in a high-stakes contest for the entertainment assets, which include the Fox film and television studios, television networks such as FX, and multichannel providers like Star India and Sky Plc.

With Wednesday’s bid, Comcast Chief Executive Officer Brian Roberts is seeking to disrupt Disney chief Robert Iger’s plan to use Fox properties to bolster his company’s already vast entertainment offerings.