• 3 days Quantum Computing Is The Newest Megatrend In Silicon Valley
  • 4 days How To Invest In The Cybersecurity Boom
  • 6 days Investors Are Patient With Unprofitable Giants
  • 8 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 10 days 5 Stocks To Keep A Close Eye On This Year
  • 11 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 12 days Central America Is Ready For The Bitcoin Hustle
  • 14 days China’s Video Game Restrictions Unlikely To Slow Down Booming Industry
  • 15 days Top Performing Stocks As Inflation Fears Grow
  • 16 days US Airline Stocks Take A Beating On New EU Restrictions
  • 17 days This IPO Could Open Sustainable Fashion Floodgates
  • 18 days Crypto Crime Nets Another $2B Fraudster
  • 20 days This Week’s Hottest Meme Stocks
  • 21 days Why World Markets Should Be Watching Germany Closely
  • 23 days Could ‘Cultured’ Meat Rival The Plant-Based Megatrend?
  • 26 days ‘Easy Money’: Crypto Is Still Attracting Newbie Investors
  • 27 days Foreign Syndicates May Have Stolen Up To $400B In COVID Benefits
  • 28 days Gold Jumps Above $1800 Ahead Of Jackson Hole Summit
  • 28 days International Banks Blacklist Afghanistan Following Taliban Takeover
  • 30 days China’s Tycoons Are Getting A Serious Reality Check
$15/Hour Minimum Wage Might Happen Naturally

$15/Hour Minimum Wage Might Happen Naturally

The worker shortage, not only…

Airlines Could Recover, But Crew Remain Elusive

Airlines Could Recover, But Crew Remain Elusive

American Airlines is canceling hundreds…

Military Coups Are Big Business

Military Coups Are Big Business

Military coups are rarely altruistic…

  1. Home
  2. News
  3. Breaking News

Will Comcast Thwart The Disney-Fox Deal?

Comcast

The Disney-Fox mega merger—one of the biggest deals in history—is facing another potential obstacle as reports emerge that Comcast may be preparing an attempt to trump Disney in the $52.4-billion deal.

Media reported late on Monday that Comcast is speaking with investment banks about an all-cash bid to thwart Disney’s takeover of Twenty-First Century Fox Inc.’s assets.

According to Reuters, citing unnamed sources, Comcast is asking investment banks to increase the bridge financing facility they have already arranged for the Sky offer by as much as $60 billion to finance the Fox bid. 

It’s not the first time that Comcast has tried to dip its toes in Fox waters. Comcast originally bid $34.41 per share for Fox’s entertainment portfolio, but Fox went with Disney’s lower original offer of $23 per share, which was then increased to $28 per share in August. The final share value was $29.54 per share—Disney’s December 13 closing price.

Fox rejected Comcast’s bid over antitrust issues, and now Fox billionaire Rupert Murdoch is also trying to beat out Comcast for control over British Sky Plc, with a little help from Disney.

The rivalry started heating up further in April, when media reported that Disney could step in to buy Sky News if Fox acquired Sky. This maneuver would get them over a regulatory hurdle in the UK, where authorities fear that control of Sky would give Murdoch too much influence over British media. Rumors began circulating that Murdoch was prepared to increase his original $16.4-billion offer for Sky. 

But Comcast wants to buy all of Sky and it’s already bid $31 billion—a deal being considered by regulators in the European Union, which should decide on June 14 whether or not they would approve the deal or let the courts handle it. Related: Why Buffett Isn’t Bullish On Gold

If Comcast indeed now tries to outbid Disney further, this game will reach fever pitch. Comcast is a Disney main U.S., controlling NBC Universal, and Disney isn’t keen to let it get its hands on Sky. Now, Comcast is going for the juggler.

The importance of the Fox deal to both Disney and Comcast shouldn’t be underestimated. Fox would give either of them the highly-sought-after access to European and Asian markets. It would also give one or the other access to major blockbuster franchises (think X-Men, Deadpool, The Simpsons, Avatar, etc).

And then we have Hulu, the key streaming-service rival to Netflix, which Fox owns 30 percent of. But Disney and Comcast also each own 30 percent of Hulu, so whoever gets Fox gets 60 percent. Comcast could throw a few roadblocks in the way of Disney’s acquisition of another 30-percent stake in Hulu, too, but it’s risky because Disney’s response could very well be to create its own streaming service and take people away from Hulu.

So what are the chances of Comcast squashing this mega deal for Disney? Right now, it’s anyone’s guess who will win this game, but Comcast has a number of tricks up its sleeve.

No one knows yet whether Comcast will make a bigger offer or not. Right now, it’s likely weighing the probability of running into too many regulatory hurdles. While everyone has been keeping a close eye on the massive AT&T-Time Warner antitrust trial, they will be glued to it even tighter now because Comcast will want to know if it’s worth counter-bidding.

By Fred Dunkley for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment