Various reports, including Comcast-owned CNBC, are reporting that Comcast is seeking to outbid Disney's offer to buy many assets of 21st Century Fox. This would put the media giant ahead of Disney's current bid of $52 billion. If Disney gets into a bidding war with Comcast, then Comcast's bid for all of Sky and Fox could get close to $100 billion, these people said.
Reuters reported that Comcast is asking investment banks to increase a bridge financing facility by as much as US$60bn so it can make an all-cash offer for the media assets that Fox has agreed to sell to Walt Disney Co (NYSE:DIS) for US$52bn. By purchasing most of their film and TV outlets - including channels like Fox Sports and FX, and franchises like the X-Men and Avatar movies - Disney would become arguably the dominant force in American and global media.
Comcast may buy 21st Century Fox instead of Disney, but what does this mean - and is either outcome actually good for audiences? Disney (dis) and Fox alluded to regulatory complexities associated with a potential Comcast buy-out in explaining why Disney's lower offer was accepted.More news: During a firefight in IN killed by a policeman
Comcast's bid on Fox's properties is dependant on the ruling of the U.S. Department of Justice's challenge regarding AT&T's attempt to acquire Time Warner Inc as Fox rejected Comcast's bid past year due to antitrust concerns. Either way, the Fox shareholders would still have to approve any deal. In doing so, it topped an earlier offer for the entirety of Sky by Fox.
Fox shares rose 5.13 percent to $39.99 on the news in after-hours trading in NY on Monday.
Shares in Sky were down 1.5% at 1,352p in mid-morning trading. The Fox deal includes access to markets in Europe and Asia that both Disney and Comcast covet, not to mention blockbuster franchises including X-Men, Avatar, Fantastic Four, Deadpool, and The Simpsons. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.