Disney may not be home free when it comes to acquiring the selection of assets from 21st Century Fox as Deadline has details pertaining to the offer Comcast is preparing to make for the same Fox components. It was announced last year that Disney had reached an agreement to acquire the Fox assets for nearly $53 billion, but according to Deadline, Comcast is looking to sweeten the pot to around $60 billion to complete the deal.
The move sets in motion what could be one of the all-time merger battles in media. Comcast chief Brian Roberts is set to clash with Disney’s Bob Iger for control of the film and TV empire that Rupert Murdoch and sons James and Lachlan spent years building. While Disney and Fox have agreed to a $52.4 billion deal, Comcast’s counter is believed to be in the $60 billion range.
As many in the media business and on Wall Street had been predicting since word surfaced two weeks ago of Comcast meeting with bankers to line up financing, the NBCUniversal owner and No. 1 U.S. cable distributor said a rival bid is in the “advanced stages.” The trigger for this morning’s announcement, Comcast said, was the filing of SEC documents by Fox and Disney in preparation for special shareholder meetings. The summer meetings are when 21st Century Fox and Disney shareholders are expected to vote on the proposed $52.4 billion acquisition of the Fox assets — neither company has specified a date as yet for its vote.
Fox president Peter Rice said last month the acquisition by Disney is expected to be completed by the summer of 2019, but this new offer by Comcast could potentially alter the landscape of this historic entertainment deal.
According to the statement released by Comcast:
Comcast said it “confirms that it is considering, and is in advanced stages of preparing, an offer for the businesses that Fox has agreed to sell to Disney.” While the company said that “no final decision has been made,” it said that “any offer for Fox would be all-cash and at a premium to the value of the current all-share offer from Disney.” Comcast said, “the work to finance the all-cash offer and make the key regulatory filings is well advanced.”
The statement added, “The structure and terms of any offer by Comcast, including with respect to both the spin-off of “New Fox” and the regulatory risk provisions and the related termination fee, would be at least as favorable to Fox shareholders as the Disney offer.”
We’ll continue to monitor this fluid situation with great interest.
