Comcast Confirms That It May Challenge Disney With an All-Cash Bid for Fox
The company says its all-cash offer would be at least as favorable to Fox shareholders as Disney’s all-stock offer.
On Wednesday morning, Comcast confirmed recent reports that it is preparing an all-cash offer to acquire 21st Century Fox — a bid that could potentially derail The Walt Disney Company’s plan to acquire some of Fox’s assets.
In an emailed statement released on Wednesday, the telecomm giant said, “Any offer for Fox would be all-cash and at a premium to the value of the current all-share offer from Disney.”
Comcast did not provide specific details of the offer but made it clear that the terms of the bid would be at least as favorable to Fox shareholders as Disney’s offer.
The company also said its efforts to finance the bid and submit key regulatory filings is “well advanced,” though no final decision has been made.
Comcast’s bold announcement signals that the company may soon be ready to enter into a bidding war with Walt Disney.
In December, Walt Disney announced an agreement to acquire some of Fox’s assets for about $52 billion in stock. Then earlier in May, it was reported that Comcast was preparing an all-cash bid for those same assets if the government approves AT&T’s acquisition of Time Warner.
The assets Comcast would acquire do not include the Fox News Channel, Fox Business Network, Fox Broadcasting Company and certain other assets. But the company would gain control of treasures like Fox’s movie studios, the FX and Nat Geo networks, regional sports networks and stakes in Sky and Hulu.