Expanding on the report from last month, Comcast has officially announced a whopping $65 billion all-cash bid in an attempt to secure assets from 21st Century Fox, casting some serious shade on the nearly $53 billion offer Disney made last year.
Comcast Corp. has made it official, unveiling an all-cash bid for large chunks of 21st Century Fox, valued at about $65 billion, trumping The Walt Disney Co.’s deal that was originally valued at $52.4 billion deal for the same parts of the conglomerate controlled by the Murdoch family.
Comcast says its bid is 19 percent higher than Disney’s, which would have put it at $62.4 billion, though Disney’s bid involved stock, which means the price it offered has risen a bit as Disney shares trended a bit higher.
How will this latest bid affect Disney’s line of thinking? Don’t expect Disney to concede this deal without opening up the wallet even more.
The formal bid is expected to lead to a bidding war with Disney. Under their deal, Fox has to share any superior bid with Disney and give it at least five business days to sweeten its offer.
Wall Street expects Disney chairman and CEO Bob Iger will not throw in the towel easily. “Disney is in a strong position to compete with a higher bid from Comcast,” said MoffettNathanson analyst Michael Nathanson in a recent report.
Buckle up, people. We expect a lot more financial fireworks to be on display before this deal is 100% signed, sealed, and delivered.
