UPDATE: Comcast tops Disney’s offer for Fox assets with roughly $65 billion cash, Disney raises offer to $71.3 billion

in Disney, Entertainment, Movies, Movies & TV, Television

UPDATE 6/20/18:

The bidding war for 21st Century Fox’s assets continues.

According to Variety, The Walt Disney Company has responded to Comcast’s $65 billion all-cash offer by raising their offer to $71.3 billion in cash and stock.

In a press release, Rupert Murdoch, Executive Chairman of 21st Century Fox, said, “We are extremely proud of the businesses we have built at 21st Century Fox, and firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace at a dynamic time for our industry. We remain convinced that the combination of 21CF’s iconic assets, brands and franchises with Disney’s will create one of the greatest, most innovative companies in the world.”

Fox previously planned a stockholder meeting for July 10 to vote on the deal, but the meeting has been postponed. As of this morning, Comcast has not responded to Disney’s new offer.

ORIGINAL STORY:

For some time now, it had seemed like a done deal. Back in December, Disney had agreed to purchase 21st Century Fox in a $52.4 billion deal that would have brought the movie studio, regional sports networks, FX and National Geographic cable channels and Fox’s stakes in Hulu and European pay-TV provider Sky to the House of Mouse.

Today, Comcast has made their move. In an attempt to keep their competitor from growing stronger, the Philadelphia-based cable company has reportedly made a $65 billion all-cash offer for the same assets Disney had previously purchased.

“We have long admired what the Murdoch family has built at Twenty-First Century Fox,” Comcast CEO Brian Roberts reportedly wrote in a letter to the Fox’s Murdoch family. “After our meetings last year, we came away convinced that the 21CF businesses to be sold are highly complementary to ours, and that our company would be the right strategic home for them.”

Comcast’s offer is for $35 in cash per share, equaling roughly $65 billion. Disney still has a chance to match or top Comcast’s offer though, and under the terms of Disney’s proposed deal, if Fox was to pull out for any reason other than a regulatory block of the transaction, they would have to pay Disney a $1.52 billion fee.

Fox is scheduled to hold an investor meeting on July 10 to address the sale of its properties, but can postpone the event if executives believe shareholders need to review additional materials.

Comcast already holds an impressive catalog of assets under its umbrella, including the NBC network, Universal Pictures, Universal Parks and Resorts, NBC Sports, cable programming and more. Adding the Fox assets would certainly bolster their production a great deal.

The deal is far from done for either side. Be sure to check back with Inside The Magic for more information as this story continues to unfold.

Source: Variety

9 Comments

  1. Alyssa

    That’s great news! Disney doesn’t deserve anymore content that doesn’t fit with their brand and image! They tried to buy it just so they earn even more money while using it as an excuse to not make anymore new and original stuff of their own even further! Besides, it’s a monopoly! Monopolies are bad! One of the many reasons why CEO Bob Iger really needs to be fired ASAP!

  2. frostysnowman

    I agree with you, this merger no matter who is involved is a very bad idea. Monopolies are very bad for the consumer.

  3. joeismadandexpensive

    I disagree with the comments above, Disney was trying to expand their movie offerings for a streaming service to compete with Netflix. I think it’s a great merger, that provides consumers more options than just under the Disney brands. As far as Comcast, they’re a huge company… If we’re talking monopolies they continue to buy off other properties at a much faster pace than Disney. I even think Universal Theme parks are overrated in comparison to Disney and they lack the top notch character and immersions to the brands. All the attractions at Universal are either 3D or are projected screens. I miss the days where attractions at Universal were more immersive with big set pieces and pyro and water effects. Besides the facts, Disney is a business that has shareholders and has to continue to grow and being a money making machine. I think if Walt was alive he’d agree with all these changes. A successful company has to continue to evolve, if they stay stuck in the past they have no room for improvement and growth. Let’s be logic here, every business owner’s dream is that they’re company grows.

  4. Alyssa

    It doesn’t matter if it’s for their upcoming direct-to-consumer service and if it’s for business purposes! Walt Disney actually cared making high-quality content way more than just making a profit! Because that’s the true moneymaker in any business! Unfortunately, when Bob Iger became CEO of the company, all of that has become the complete opposite! Iger cares way more about profit and way less on making high-quality content! Businesses should not function that way! They could eventually go bankrupt if they keep making low-quality products with the sole purpose of making a profit and maker their consumers dumber! Walt himself would be extremely upset and never approve the way that his beloved company is being run since Iger took over! So you need to deal with it! Disney will be better off without Fox!

  5. Jeannell Williams

    None of your comment makes any sense. 1) none of their products are actually low quality. Like none. They are making money hand over fist and their products are very high quality still to this day. 2) walt almost bankrupted the company twice if it wasn’t for his brother. Believe me walt would have to just deal with this. On top of that Disney owns touchstone they have been making adult style films for years under that banner. Doing M&A is fine because walt himself did them. Peter Pan Winnie the Pooh. Last I checked those are owned by someone else and walt had to buy the rights. This is normal. Also what you fail to see is that Disney can one day be bought because they refuse to change with the times. That’s how this stuff works. That’s what Iger sees. And so do I. A lot of ppl do. Companies now are gaining cash like crazy and can very easily but out Disney because folks refuse to see the writing on the wall. Universal still wants Disney. I won’t be too shocked if that’s the real reason why they want fox. Universal owns Comcast. I won’t be shocked if this affects Disney in a negative way if they get fox. It’s better if Disney gets it. Believe me.

  6. joeismadandexpensive

    Disney till this very day makes high quality content. I mean look at the top movies of the year! They’re all part of the Disney brand as a whole. Also, Disney owns other subsidiary studios like Touchstone and Dimension Studios. They also own ESPN. Disney diversifying it’s offerings doesn’t mean they’re acquiring low quality entertainment. 21st Century Fox, owns properties like Avatar, Titanic, Deadpool, X-men, and etc. Besides Disney didn’t always own the rights to Mary Poppins. Walt had to fight for it in order to even make Mary Poppins into a movie. Iger has to continue to evolve the company. Walt had nearly driven the Disney company bankrupt multiple times. I think Disney still does a great job acknowledging the past and the quality of the work. However, times have changed, Disney just wants to be a step ahead of the competitors.

  7. Alyssa

    None of their products are actually low-quality?! Are you crazy?! Have you heard of Home on the Range, Chicken Little, The Aristocats, The Black Cauldron, Atlantis The Lost Empire, and especially Frozen?!

  8. Alyssa

    Disney was better when Michael Eisner was CEO at the time, especially during the 90s! He made the animation studio the greatest during the Disney Renaissance! He took risks! But ever since he got fired and Bob Iger took over, things went downhill from there! He would rather play it safe! He had John Lasseter take over both Pixar and Disney Animation Studios and the movies that were made were not as good as the 90s and even the early 2000s! He’s nothing but a greedy, souless, lazy, and selfish moron! That’s one of the many reasons why Iger needs to be fired ASAP and replaced with a new and better CEO! So saying the company has been making high-quality content to this day makes you a shill!

  9. joeismadandexpensive

    Films like Frozen, Zootopia, Big Hero 6, Wreck it Ralph, Moana, are all quality pieces of work. SO much that they all won Oscars and during Iger era! Yes, I agree that Michael Eisner made some risk decisions and most of them paid off. But I will give you a few examples of failures during the Eisner era: The original concept of California Adventure, Disney’s America theme park, EuroDisney, these decisions almost bankrupted the Disney company at the hands of Eisner. He was so absurd, he even wanted a hotel in the shape of the entire body of Mickey Mouse to be built with the lobby and rooms at Mickey’s feet, all respectable Imagineers said that is an impossible task. Also, a few of the films mentioned were released during the Eisner era like Home on the Range, Atlantis, and Chicken Little. I haven’t seen many failures under Iger, I can list more successes than failures. As far as greedy, what’s to say that Eisner wasn’t any different. Corporations pay there CEO’s filthy amounts of money that neither of us can ever see in our lifetime unless we win the lotto. Eisner is also responsible for putting more emphasis on merchandising of Disney IP. Also, Roy E Disney stepped down from being vice chairman and chairman of the Animation Studios because of Eisner. He felt there was too much micromanagement and too many flops between ABC studios and the fact that the company was turning into a “rapacious, soulless” company. At the time Eisner was refusing to step down. Eisner wasn’t fired, he stepped down and remained a member of the board of directors briefly. It was Eisner himself that suggested that if it wasn’t for Iger he would’ve stayed until he was due to step down a year later. I think you have your Disney facts a bit skewed.

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