Comcast Outbids Disney for Fox's Assets With $65 Billion All-Cash Offer

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Just a day after a U.S. District Judge approved the upcoming merger between AT&T and Time Warner, Comcast has submitted a bid for 21st Century Fox's TV and film assets, reports CNBC.

Comcast has presented Fox with an all-cash offer at $35 per share for a total of $65 billion, which beats out Disney's stock-based $52.4 billion deal. 21st Century Fox has already moved forward on a deal with Disney, but Comcast is aiming to change the minds of Fox's board members. From the letter sent to Fox's board by Brian Roberts, Comcast CEO.

So, we were disappointed when 21CF decided to enter into a transaction with The Walt Disney Company, even though we had offered a meaningfully higher price. We have reviewed the publicly available terms of the proposed Disney transaction, as well as the joint proxy statement/prospectus filed with the SEC describing the reasons for the 21CF Board of Directors' decision.

In light of yesterday's decision in the AT&T/Time Warner case, the limited time prior to your shareholders' meeting, and our strong continued interest, we are pleased to present a new, all-cash proposal that fully addresses the Board's stated concerns with our prior proposal.

Our new proposal offers 21CF shareholders $35.00 per share in cash and 100% of the shares of New Fox after giving effect to its proposed spinoff, providing superior and more certain value as compared to Disney's all-stock offer.
Comcast first announced its plans to make a bid on 20th Century Fox, 20th Century Fox Television, several Fox-owned cable channels, and a stake in Hulu back in May, but the company was waiting on a final antitrust ruling in the AT&T/Time Warner merger. It was believed that if the ruling had not been in AT&T's favor, that Comcast would have backed off of its efforts to outbid Disney.

Both Disney and Comcast are interested in Fox's assets to expand their reach beyond the United States and to stock their streaming catalogs with Fox content, which includes movies like Avatar, X-Men, Fantastic Four, Deadpool, The Grand Budapest Hotel, Titanic, Miracle on 34th Street, The Shape of Water, and Gone Girl.

Article Link: Comcast Outbids Disney for Fox's Assets With $65 Billion All-Cash Offer
 

Lord Hamsa

macrumors 6502a
Jul 16, 2013
597
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IIRC, the Disney deal also includes some $16B in debt assumption by Disney, so it's a $68B bid, higher than Comcast's $65B. (Unless Comcast is also assuming that debt, which I don't see spelled out here.)

Comcast's bid is all cash, though, as opposed to stock.
 

69Mustang

macrumors 604
Jan 7, 2014
7,309
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In between a rock and a hard place
I'd take Disney stock over Comcast cash any day of the week if I was on the Board. Could be SO much more valuable even in just the short-term future.
I'd take the $65B. That's guaranteed. Disney's stock value is subject to market fluctuations. I mean if they believed in Disney that much, they could hypothetically take $55B of the $65B and come out the even better. I jest of course. $65B is hard cash. Disney's offer could eventually be worth more or it could eventually be worth less.
 

ipponrg

macrumors 68000
Oct 15, 2008
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I'd take the $65B. That's guaranteed. Disney's stock value is subject to market fluctuations. I mean if they believed in Disney that much, they could hypothetically take $55B of the $65B and come out the even better. I jest of course. $65B is hard cash. Disney's offer could eventually be worth more or it could eventually be worth less.
But you have to remember that it's not just stock value. I believe this also guarantees a board seat. Being on the Disney board is something I think Rupert Murdoch would want.
 

ArtOfWarfare

macrumors G3
Nov 26, 2007
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Doesn't this also include all of Fox's television series... American Dad, Family Guy, Orville, Seth MacFarlane's soul, etc? Oh, and Simpsons.

Those are each worth more than everything else anyone else has mentioned that Fox owns. Except maybe Star Wars.

Although... I wonder if this would restrict Seth's ability to satirize Disney and/or Star Wars, if Disney bought it?
 

joueboy

macrumors 68000
Jul 3, 2008
1,575
1,545
But you have to remember that it's not just stock value. I believe this also guarantees a board seat. Being on the Disney board is something I think Rupert Murdoch would want.
Well it turned out that’s not the case. I’m sure he gets a big chunk on that 65B which he is more interested than being in the board seat of Disney.
 

computersteve

macrumors newbie
Oct 8, 2015
13
9
Things like this make me really dislike America... I really do hope that Disney does loose the assets. You think I want to pay for another streaming service from Disney when these mofo's are arguing over 65 billion & I ain't got 65 cents lol.
 

Junior117

macrumors 6502
Apr 9, 2015
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Toronto, Canada
I'm not the side that wants Comcast to go away. Mainly because I'm on the side that wants Marvel's movie IP rights for Deadpool, Fantastic Four, Mutants, and X-Men (and whatever else 21CF owns from Marvel) back to Marvel. I understand very few people care, so this is just selfish on my end, but anyway.
 

jayducharme

macrumors 68040
Jun 22, 2006
3,530
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The thick of it
and Star Wars!
That's why I think Disney is going to up their offer. They have so much invested in Star Wars right now, and would benefit from owning the original three movies. Then again, if they can find a way to get the movies without buying Fox, they might go that route.
 

macrooster

Suspended
May 28, 2014
58
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I'd take Disney stock over Comcast cash any day of the week if I was on the Board. Could be SO much more valuable even in just the short-term future.
And you’re opinion is based off what industry knowledge?
 
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