Comcast Corp. has bid $65 billion to purchase 21st Century Fox.
The all-cash offer comes a month after Comcast announced that it was considering outbidding Disney for Fox. Disney currently has an all-stock transaction offer on the table valued at roughly $52.4 billion. Fox’s shareholders will reportedly make a decision on the Disney offer on July 10.
The bidding war has far-reaching consequences not just for franchises such as Disney’s Marvel Cinematic Universe, which would benefit considerably from the addition of Fox properties such as X-Men and Fantastic Four, but the wider media landscape. Much like Disney, Comcast is a parent company to many subsidiaries, including Universal Studios and NBC Universal.
Comcast CEO Brian Roberts says he is “highly confident” that the offer will “obtain all necessary regulatory approvals in a timely manner.” It’s also been confirmed that Comcast will cover the $1.5 billion breakup fee Fox would owe Disney if it backed out of the deal.
“Our money’s where our mouth is,” Comcast CFO Mike Cavanagh said during a call with investors Wednesday. “We think this deal gets closed.”
Should Fox decide that Comcast has the better deal, Disney would have five days to make a counter offer.
Source: CNN Money