Disney News

Tag: comcast

  • Disney Wins Bidding War Over Fox As Comcast Drops Out Of Battle

    Disney Wins Bidding War Over Fox As Comcast Drops Out Of Battle

    Disney and Comcast have been battling for months for control of Twenty-First Century Fox’s entertainment business, but today Comcast dropped out of the fight leaving Disney the winner of one of the highest-stakes duels in media history.

    “Comcast does not intend to pursue further the acquisition of the Twenty-First Century Fox assets and, instead, will focus on our recommended offer for Sky,” the company said in a statement Thursday.

    Comcast had been locked in a battle with the Walt Disney Company for the bulk of Mr. Murdoch’s Fox empire, with the cable company submitting a $65 billion offer for the assets last month topping Disney’s initial $52 billion offer. Disney quickly pushed back on Comcast’s offer with a higher bid of $71.3 billion, which Mr. Murdoch and his board quickly accepted. Shareholders for both Disney and Fox will vote on the proposed merger on July 27.

    CEO Brian Roberts, who had sought to outdo Disney given Comcast’s history with the company, which dates to an unsolicited takeover bid rebuffed by Disney in 2004, delivered a sporting statement. “I’d like to congratulate Bob Iger and the team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company,” he said.  The Department of Justice has already given the green light to Disney’s bid as long as it sells 22 regional sports networks.

    Comcast Corp. and Fox have been battling for Fox and Sky in order to amass more programming as they compete for viewers with both traditional TV networks and technology companies such as Netflix and Amazon.

    Comcast’s stock rose more than 2.5 percent today in premarket trading. Shares of Disney climbed 1.2 percent, while Fox’s stock dipped 1 percent before the opening bell.

  • Disney Wins U.S. Approval for Fox Deal, Putting Comcast On The Ropes

    Disney Wins U.S. Approval for Fox Deal, Putting Comcast On The Ropes

    It’s not a knockout yet, but Disney has dealt a big blow to Comcast for a potential rival bid in the Fox deal. Walt Disney Co. has just won U.S. antitrust approval for its $71 billion purchase of 21st Century Fox Inc.’s entertainment assets.

    In order to secure Justice Department approval of its acquisition of major 21st Century Fox assets, Disney has agreed to sell off Fox’s 22 regional sports networks.

    The Justice Department on Wednesday filed a complaint in federal court seeking to block Disney from acquiring the regional sports networks arguing that Disney’s ownership of the national sports powerhouse ESPN created anti-competitive conflicts, but announced a settlement agreement with Disney that calls for the divestitures.

    “American consumers have benefitted from head-to-head competition between Disney and Fox’s cable sports programming that ultimately has prevented cable television subscription prices from rising even higher,” said Delrahim, assistant attorney general and head of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that sports programming competition is preserved in the local markets where Disney and Fox compete for cable and satellite distribution.”

    The DOJ’s sign off on Disney’s $71.3 billion transaction on Wednesday is a big hurdle for rival Comcast in the battle to acquire the major portion of Rupert Murdoch’s TV and film empire.

    Fox last week accepted a sweetened bid from Disney, after the two media juggernauts had been going head to head with a $65 billion offer coming from Comcast about two weeks ago, nearly six months after Disney initially bid $52.4 billion for Fox in December. The $38-a-share price is about $10 a share higher than what Disney offered in December — and $3 above Comcast’s bid.

    The fight is definitely not over. Comcast is expected to respond with yet another offer, amid reports it is reaching out to potential acquisition partners if the bidding should climb as high as $90 billion. Analysts have speculated the Fox assets could fetch as much as $42-$43 a share.

    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.

  • BREAKING: Disney Raises Bid To $71 Billion For 21st Century Fox

    BREAKING: Disney Raises Bid To $71 Billion For 21st Century Fox

    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.

  • Comcast Tops Disney’s Bid For Fox With $65 Billion All-Cash Offer

    Comcast Tops Disney’s Bid For Fox With $65 Billion All-Cash Offer

    The bidding war for 21st Century Fox has started. Today, Comcast made a $65 billion all-cash offer for the bulk of 21st Century Fox’s TV and studio assets, topping a previous $52.4 billion bid made by Walt Disney Company.

    If successful, the move would bring together Comcast’s NBC broadcast network and the Universal movie studio with 20th Century Fox, the FX cable network and the regional Fox sports networks. The offer is valued at $35.00 per share in cash, representing a premium of approximately 19% to the value of Disney’s all-stock offer, according to Comcast.

    “We have long admired what the Murdoch family has built at Twenty-First Century Fox,” Comcast CEO Brian Roberts wrote in a letter to Fox’s controlling Murdoch family, telling 21st Century Fox Executive Chairman Rupert Murdoch and his sons Lachlan and James that Comcast “would be the right strategic home” for the parts of the company that are for sale.

    The financial bidding war comes just a day after a U.S. District Judge gave his blessing for AT&T’s to by Time Warner, without any conditions on the $85.4 billion deal. That approval signaled that Comcast might have less trouble getting the deal approved than previously expected.

    If Disney comes out on top of the bidding war, the acquisition could cement Disney CEO Bob Iger’s legacy. Sealing a deal for Fox would cap off a slew of massive acquisitions under his aegis at Disney, which include a $4 billion buy of Marvel Entertainment in 2009; a $4 billion purchase of Lucasfilm in 2009; and $2.58 billion over three years for BAMTech, the streaming-video unit that is meant to power Disney’s various subscription-based video outlets.

    But a deal would benefit Comcast similarly, adding new strength to its Universal movie production operations, its NBC Sports unit, and its cable programming operations.

    Comcast’s $65 billion all-cash offer for Fox’s entertainment businesses is higher than the $60 billion that pundits had been predicting. Experts are expecting Disney to make a counter offer.

    The battle for Twenty-First Century Fox comes as traditional entertainment companies try to amass more properties to compete better with technology companies such as Netflix for viewers’ attention — and dollars.

  • Comcast Challenging Disney For Fox Assets With Estimated $60 Billion Bid

    Comcast Challenging Disney For Fox Assets With Estimated $60 Billion Bid

    You may want to get some pop corn and get ready to watch the show, because the battle for Fox isn’t over. Comcast is jumping back into the race for Fox with Estimated $60 Billion offer.

    On Wednesday, Comcast confirmed that it’s in the “advanced stages” of making an offer. The company provided very few details other than it would it be an all-cash offer. Disney offered Fox a $52.4 billion all-stock deal late last year, and shareholders are expected to vote on the offer this summer. Comcast is hoping to sneak in with this all-cash offer ahead of that vote.

    Last year, even though it exceeded Disney’s offer, Fox’s board rejected Comcast’s original bid, because they believed it was more risky with regulators to get approval. Now it seems that another major deal — Time Warner and AT&T — might actually go through. If it does, Comcast could potentially acquire parts of Fox without alarming regulators.

    The Fox assets — which range from international pay-TV distribution to cable networks and a stake in streaming giant Hulu — are some of the most-prized entertainment properties likely to come on the market for some time, and the Murdoch family’s willingness to sell these assets has come as a surprise to many in the media industry.

    The rare acquisition opportunity, combined with the need to significantly expand overseas and acquire new distribution and content, is adding a dimension of urgency for both Comcast and Disney.

  • Disney Filing Discloses Fox’s Reasons For Rejecting Comcast Bid

    Disney Filing Discloses Fox’s Reasons For Rejecting Comcast Bid

    In a filing made by Walt Disney Co with the Securities and Exchange Commission today, in their efforts to acquire Fox’s film and TV assets, we now know Fox’s reasons for rejecting Comcast’s offer.

    Walt Disney Co announced the purchased most of 21st Century Fox’s assets back in December in a deal worth $52.4 billion. At the time it was well-known that Comcast Corp had also been bidding on the assets, but they eventually bowed out.

    In documents filed with the SEC today, Disney disclosed Fox’s reasons for rejecting the rival offer without disclosing the bidder.

    The documents state that Fox rejected a deal with another entity — that multiple sources have identified as Comcast Corp — due to higher regulatory risks.