FOX Agrees Merge With Disney After New $71 Billion Bid

Posted June 20, 2018

Under the revised offer, Disney is now offering $38 per Fox share for the assets, up from the previous 28%.

Disney is locked in a battle with USA media conglomerate Comcast, which has offered $65bn in cash for Fox. Both Disney and Comcast are looking to use the Fox assets to bolster their content and expand overseas. A representative for Fox didn't immediately respond to a request for comment outside regular business hours.

The 21st Century Fox logo is displayed on the side of a building in midtown Manhattan. His newspapers such as Wall Street Journal, New York Post, Times of London and a portfolio of Australian properties are housed in a second company, News Corp.

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Disney, meanwhile, could also benefit from Fox's wide range of television and film assets, which could feed into its streaming services, including a planned rival to Netflix sometimes referred to as Disneyflix.

Analysts have been gearing up for more media consolidation following last week's approval by a U.S. judge of a massive $85 billion takeover by telecom-broadband giant AT&T of media-entertainment conglomerate Time Warner.

When Disney announced it was essentially buying the production assets of Fox, the deal was already an insane amount of money, $52 billion in stock and Disney taking $14 billion in debt off Fox's hands for a total cost of $66 billion, roughly 1,100,000 teacher's salaries. The amended and restated Disney Merger Agreement offers a package of consideration, flexibility and deal certainty enhancements that is superior to the proposal made by the Comcast Corporation on June 13, 2018. In a statement Wednesday Disney said it is raising its offer because Fox's value increased due to "tax reform and operating improvements".

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Meanwhile, there's a separate - yet intertwined - fight for Sky, the British pay-TV company. It can't really be said that Comcast would have really done anything good with them, so we will just have to wait and see how this pans out - as Comcast could still make a higher offer.

In any case, Comcast isn't likely to go away quietly.

Disney is making a $71 billion counter bid for Fox's entertainment businesses following Comcast's $65 billion offer for the company. That leaves CEO Brian Roberts with some tough decisions.

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