The bidding war for Twenty-First Century Fox’s assets is in full swing and both Disney and Comcast are battling it out in an attempt to gain control of the companies lucrative assets. The Walt Disney Co. isn’t holding any punches either as the company raised its bid for Fox’s assets to $71.3 billion, the companies announced today.
The two media juggernauts are going head to head with a $65 billion offer coming from Comcast just a week ago, nearly six months after Disney initially bid $52.4 billion for Fox in December. The new bid is $38 a share, up from Disney’s $28 a share offer in December and rivaling Comcast’s $35 a share all-cash bid last week.
The bidding war was expected as the two media giants battle over Fox’s movie production business as well as FX, NatGeo, Fox’s 30 percent stake in Hulu and its international assets, including Star India and its 39 percent stake in European pay TV giant Sky. 21st Century Fox is the next big prize as the media industry consolidates to survive against competitors like Netflix.
During a call with investors today, Disney CEO Bob Iger was extremely confident about the potential acquisition. “We believe that we have a much better opportunity — both in terms of approval, and the timing of that approval — than Comcast does in this case,” he said.
Disney again emphasized the business and strategic benefits of the takeover for investors. “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,” Iger earlier said in a statement. “At a time of dynamic change in the entertainment industry, the combination of Disney’s and Fox’s unparalleled collection of businesses and franchises will allow us to create more appealing high-quality content, expand our direct-to-consumer offerings and international presence, and deliver more personalized and compelling entertainment experiences to meet growing consumer demand around the world.”
Disney’s new bid allows Fox shareholders to choose cash or stock. Fox called the new Disney offer “superior” to the Comcast proposal.