Disney Ups Its Bid for FOX. Will Comcast Fold?

FOX has accepted a $71.3 billion bid from Disney, which tops Comcast’s previous offer of $65 billion.   Disney went all in to ensure Comcast didn’t steal FOX’s assets out from under them, including Marvel assets like The X-Men and Fantastic Four.

That easily trumps Comcast’s all-cash offer made on June 13th. The new Disney-FOX deal is reportedly worth $38 per share in cash and stock.

Disney and FOX have agreed upon this acquisition deal following a competing bid by Comcast. The last several months in Hollywood have come with massive changes to the studio structure. The biggest deal that will have major ramifications for the industry moving forward is FOX’s decision to sell its movie and TV divisions. A bidding war quickly began with Comcast and Disney viewed as the most serious parties.

Despite a higher offer from Comcast, FOX and Disney agreed to a deal worth $53 billion late last year.

Disney’s new offer “gives FOX shareholders the option to take their payment in the form of cash or stock, up to a 50-50 level”, and the company will also “take on about $13.8 billion of FOX’s net debt”, which brings the total value of the deal to north of $85 billion.

The Disney-FOX merger hasn’t officially happened though.  It must first be approved by regulators. That shouldn’t be a problem after Time Warner and AT&T deal was approved. However, the smaller chance at a deal that won’t hold up gave Comcast new life in this hunt for FOX’s assets as they officially made their $65 billion bid.

Disney plans on their own streaming service in the future and adding more properties to their catalog will give them a greater chance at keeping users engaged.

Besides having the chance to bring Marvel properties together under one roof at Disney, the company would also gain the Alien franchise, X-Files, Avatar, and classics like M*A*S*H.

There is also the fact that FOX has been trying to fully acquire Sky TV in Europe.  Disney is in a much better position to make that kind of move happen and give them foot in the door for European distribution.

Category: Film

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