Friday, March 29, 2024 | Ramadan 18, 1445 H
clear sky
weather
OMAN
25°C / 25°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Comcast prepares to top Disney’s $50 bn offer for Fox

1346066
1346066
minus
plus

NEW YORK: Comcast Corp confirmed it was preparing a higher, all-cash offer for most of the media assets of Twenty-First Century Fox, setting up a bidding war with rival Walt Disney Co, which already has agreed to a $52-billion deal with Fox.


The largest US cable operator said it was in advanced stages of readying a bid that would be superior to Disney’s all-stock offer.


“While no final decision has been made, at this point the work to finance the all-cash offer and make the key regulatory filings is well advanced,” Comcast said in a statement.


The news lifted Fox shares 1.6 per cent to close at $38.77. Comcast shares closed down 1.9 per cent at $31.88 and Disney shares fell 1.1 per cent to $102.89.


By going public with its plans, Comcast is putting pressure on Fox and its shareholders to not rush into approving the Disney deal. Fox shareholders will vote on the Disney deal later this summer. A date has not yet been set.


Comcast may have a tough time winning over Fox’s largest shareholder, Murdoch, however. The Murdoch family owns a 17 per cent stake in the US TV and movie giant and would face a multi-billion dollar capital gains tax bill if he accepted an all-cash offer from Comcast, tax experts have said.


A large Fox shareholder, British activist TCI Fund Management, wrote a letter to Murdoch on Wednesday saying it was imperative for Fox’s board to run a fair auction and sell to the highest bidder. “If Comcast formalises a superior all-cash offer, we would support that offer over the current Disney offer,” TCI founder Christopher Hohn said in the letter. TCI owns 7.4 per cent of Fox.


Fox’s Executive Chairman Lachlan Murdoch said earlier this month that the company was committed to its agreement with Disney but added that Fox’s board was aware of its fiduciary duties on behalf of all shareholders.


Jeffrey Logsdon, an analyst with JBL Advisers, said that Comcast seems intent on winning a bidding war for Fox.


“Rivalry can frequently drive prices to un-economic levels,” Logsdon said.


Comcast Chief Executive Brian Roberts will only proceed with a bid if a federal judge next month allows AT&T Inc’s planned $85-billion acquisition of Time Warner Inc to proceed, sources have said. Disney in December offered stock then worth $52.4 billion to buy Fox’s film, television and international businesses to beef up its offering against streaming rivals Netflix Inc and Amazon.com Inc.— Reuters


SHARE ARTICLE
arrow up
home icon