Disney Boosts Offer For 21st Century Fox To More Than $71B
Disney boosted its offer for 21st Century Fox to more than $71B "in a bid to knock rival Comcast out of the battle" to buy the bulk of Rupert Murdoch’s entertainment empire, according to Mark Sweney of the London GUARDIAN. The new offer from Disney trumps Comcast's $65B "all-cash hostile offer tabled last week." Disney "has also moved from its original tactic of an all-stock deal for Fox" and a 39% stake in Sky to a 50-50 "mix of cash and shares." Fox, which backed Disney’s original bid, said that "in light of the new offer," Comcast’s bid "cannot be considered to result in a better deal for shareholders." Disney said that it expects to pay a total of about $35.7B in cash and issue 343 million new shares to Fox shareholders, "representing about a 19% stake in Disney" (GUARDIAN, 6/20). The BBC reported both Disney and Comcast "are vying for Fox's entertainment assets." The pair "are also separately battling" over Sky News. Fox would retain some "successful outlets," including Fox Sports, Fox News, Fox TV Stations and other assets, and mold them into a new company called "New Fox." The fight for 21st Century Fox "comes as traditional media groups scramble to consolidate in the face of mounting competition" from online challengers like Netflix and Amazon (BBC, 6/20).