Comcast's Higher Bid For FOXA Assets To Ruin Disney's Party
Zacks Investment Research | May 23, 2018 10:39PM ET
Reportedly, Comcast (NASDAQ:CMCSA) is ready to pay more than Disney’s (NYSE:DIS) offer of $52.4 billion for 21st Century Fox’s (NASDAQ:FOXA) assets, only if a federal judge approves AT&T's (NYSE:T) planned takeover of Time Warner (NYSE:TWX) .
According to regulatory filing, Comcast along with Verizon Communications (NYSE:VZ) had been an early suitor for Fox’s assets that includes Twentieth Century Fox Film and Television studios, as well as cable and international TV businesses.
However, Fox didn’t find Verizon’s all-stock offer lucrative at that time. The company also rejected Comcast’s offer due to regulatory concerns. The cable giant had also suggested divestitures, which however, failed to satisfy Fox’s management.
Moreover, Comcast’s refusal to entertain a reverse break-up fee, in case of a regulatory blockage sealed the fate of the deal. Notably, Disney’s offer for Fox’s assets includes a $2.5 billion termination fee clause. However, the offer of $29.54 per share is lower than Comcast’s previous offer of $34.41 per share.
Comcast Planning an All-Cash Bid
Per CNBC, “Comcast originally touted its strong stock as a reason for Fox to accept a deal from the largest U.S. cable provider instead of Disney.”
Comcast Corporation Price and Consensus
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