Disney makes $70.3 billion counterbid for Twenty-First Century Fox

Share

According to Disney's release in December this was a "definitive agreement" between the companies, but that was shaken up this summer by an offer from Comcast.

The company's board of directors told Reuters that Disney's new offer was "superior" to Comcast's proposal and would create "one of the greatest, most innovative companies in the world".

The move comes a week after Comcast, the telecommunications conglomerate, countered Disney's $52.4 billion all-stock deal with a bid of $65 billion in cash.

After AT&T's court victory allowing it to buy Time Warner last week, Comcast has reason to think that a Comcast/Fox deal would be approved. In a call with analysts, Iger said he believes Disney's bid is superior to Comcast's from a regulatory perspective, and said that six months of dealing with regulators both in the US and internationally has given Disney a "meaningful head start".

Disney no longer expects to complete the $20 billion share repurchase it announced in December, McCarthy said.

Just how high can the bidding war go? Fox is bidding to acquire the remaining 61%, which would then be handed over to Disney in a deal. Disney will also now control the rights to such current Fox cinematic franchises as Avatar, Planet of the Apes, Alien, Predator, Die Hard, Kingsman, Ice Age and Night at the Museum. Disney's new offer of $38 per share is half cash and half stock. Comcast, based in Philadelphia, did not immediately respond to a request for comment.

Hollywood producers speak out against Fox over immigration stance
Of Carlson's comments, MacFarlane tweeted, "In other words, don't think critically, don't consult multiple news sources, and in general, don't use your brain".

"The acquisition of 21st Century Fox will bring significant financial value to the shareholders of both companies, and after six months of integration planning we're even more enthusiastic and confident in the strategic fit of the assets and the talent at Fox". "Investors have been speculating that they could bid as high as $43-45". Disney and Fox said they made a decision to postpone those meetings in order to "prepare updated SEC filings and proxy materials which will be sent to shareholders".

Granted, even if Fox agrees to a deal, the merger would still be subject to approval by the Federal Trade Commission.

Fox shares jumped 8 percent to $48.23, while Comcast rose 2.1 percent to $33.52.

Stay tuned to Heroic Hollywood for the latest developments on Disney and Comcast's bids for Fox's assets!

Mr Murdoch, whose family trust has an economic interest of 16.6% in Fox, stunned the media industry when, just before Christmas previous year, he agreed to sell most of the company to Disney in a deal that would represent the biggest shake-up in Hollywood since the 1930s - bringing together respectively the fourth and second largest movie studios in Tinseltown.

Watch 21st Century Fox trade in real time here.

Share