Comcast Confirms Plans to Outbid Disney for Fox's Assets With 'Superior' All-Cash Offer

by

Last December, The Walt Disney Company outlined plans to acquire 21st Century Fox and a collection of its subsidiaries for $52.4 billion in stock. Those plans have been under regulatory scrutiny for months and have yet to be finalized, and now Comcast has confirmed it is in "advanced stages" of sending Fox a "superior" all-cash offer in hopes of besting Disney's all-share offer (via Bloomberg).

Previous reports about Comcast's potential bid also referenced an all-cash deal, and put an estimate above Disney's to as much as $60 billion in cash from Comcast for the designated Fox assets. Comcast's press release today does not disclose an offer amount, but the company says the structure and terms of any offer would be "at least as favorable to Fox shareholders as the Disney offer."


Comcast says that its work to finance the offer for some of Fox's assets is "well advanced," and the company has already prepared to file key regulatory statements. Of course, no final decision has yet been made, but analyst Daniel Ives notes that, "If Comcast won these assets from the arms of Disney, it would be a devastating blow to [Disney CEO] Bob Iger."

In view of the recent filings with the U.S. Securities and Exchange Commission by The Walt Disney Company (“Disney”) and Twenty-First Century Fox, Inc. (“Fox”) in preparation for their upcoming shareholder meetings to consider the acquisition of Fox by Disney, Comcast Corporation (“Comcast”) confirms that it is considering, and is in advanced stages of preparing, an offer for the businesses that Fox has agreed to sell to Disney (which do not include the Fox News Channel, Fox Business Network, Fox Broadcasting Company and certain other assets).

Any offer for Fox would be all-cash and at a premium to the value of the current all-share offer from Disney. The structure and terms of any offer by Comcast, including with respect to both the spin-off of “New Fox” and the regulatory risk provisions and the related termination fee, would be at least as favorable to Fox shareholders as the Disney offer.

As of now, recent reports have stated that the Comcast/Fox offer's final fate may rely on the government's decision regarding AT&T's acquisition of Time Warner. Similar to AT&T owning DirecTV, Comcast owns NBCUniversal, and both companies are looking into purchasing large TV programming entities.

Because of this, it's believed Comcast will take a wait-and-see approach, and if a U.S. judge rules against AT&T on antitrust grounds in a trial coming next month, Comcast is expected to back off of Fox's assets. If AT&T wins the case and Comcast moves forward with a bid, Bloomberg Intelligence analyst Paul Sweeney says the Disney vs. Comcast bidding war would be intense: "Disney is likely to put up quite a fight."

Disney and Comcast are looking at Fox's entertainment assets in hopes of expanding their reach outside of the United States, as well as stocking their streaming back catalogs with a quick rush of content. Movie assets that either company could gain from 21st Century Fox include Fox Searchlight Pictures and Fox 2000, homes of movies like Avatar, X-Men, Fantastic Four, Deadpool, The Grand Budapest Hotel, The Shape of Water, and Gone Girl.

For TV shows, Fox's TV production companies include Twentieth Century Fox Television, as well as FX Productions and Fox21, which bring viewers shows like The Simpsons, This Is Us, and The Americans. Notably, the winning bidder would gain Fox's 30 percent stake in Hulu, and if Disney acquires the company it would become a majority shareholder of the streaming service.

Top Rated Comments

(View all)
Avatar
27 months ago
Oh great—so with Comcast owning all these networks we're only going to be allowed to watch those networks when using their internet because net neutrality is gone and they have a monopoly as an ISP in many regions. I would think that Disney would have a lot less conflict of interest than Comcast in this matter, but given the current administration who knows what regulators might approve these days.
Score: 9 Votes (Like | Disagree)
Avatar
27 months ago
Hmm... I was kinda hoping Marvel Studios (Disney) would get the rights back to all of the characters that are under contract to Fox. I like what Fox has done with Deadpool and look forward to seeing the upcoming New Mutants movie, but I think Marvel Studios could do much better with the X-Men than what Fox has put out.
Score: 9 Votes (Like | Disagree)
Avatar
27 months ago

Subscription rates will go up. Again.

Yup. God, I hate Comcast with a passion.
Score: 8 Votes (Like | Disagree)
Avatar
27 months ago

whos more evil disney or comcast? i vote comcast all day everyday

Overall Disney isn't evil, they really are just trying to make money, which is not evil, Comcast on the other hand tries to screw over the customer every chance they get, that is indeed evil.
Score: 7 Votes (Like | Disagree)
Avatar
27 months ago
Comcast sucks
Score: 5 Votes (Like | Disagree)
Avatar
27 months ago
Either way we lose.
Score: 4 Votes (Like | Disagree)

Top Stories

Apple Doubles the Price of RAM Upgrade on Entry-Level 13-Inch MacBook Pro

Saturday May 30, 2020 4:00 pm PDT by
Apple today doubled the price for upgrading the RAM on the entry-level 13-inch MacBook Pro, with customers in the United States now being charged $200 to move from 8GB to 16GB compared to the previous $100 upgrade price. Similar increases are seen in other countries, such as moving from €125 to €250 in Germany and from £100 to £200 in the United Kingdom. Current pricing on RAM upgrade for ...

Tim Cook Addresses George Floyd's Death and Ensuing Protests and Riots as Apple Temporarily Closes Some U.S. Stores

Sunday May 31, 2020 8:04 pm PDT by
Amid unrest in numerous U.S. cities following last week's killing of George Floyd by police in Minneapolis, Apple CEO Tim Cook has shared an internal memo with employees (via Bloomberg) addressing the pain that many are feeling and urging others to commit "to creating a better, more just world for everyone." Cook also announced that Apple is making donations to several groups challenging...

Apple's First MacBook Pro With a Retina Display Will Become 'Obsolete' in 30 Days

Monday June 1, 2020 7:50 am PDT by
If you are still hanging on to a Mid 2012 model of the 15-inch MacBook Pro with a Retina display, and require a new battery or other repairs, be sure to book an appointment with a service provider as soon as possible. In an internal memo today, obtained by MacRumors, Apple has indicated that this particular MacBook Pro model will be marked as "obsolete" worldwide on June 30, 2020, just over...

Top Stories: macOS 10.15.5, New Powerbeats Pro Colors, iPhone 12 and 13 Rumors, and More

Saturday May 30, 2020 6:00 am PDT by
This week saw an interesting mix of news and rumors on the Apple front, led by the release of macOS 10.15.5, which brings a new battery health feature to newer Mac notebooks, while we also saw the official announcement of new colors for the Powerbeats Pro earphones. On the rumor front, we heard a few tidbits about not just this year's iPhone 12 but also next year's iPhone, while we saw...

8 Mac Tips and Tricks You Might Not Know

Friday May 29, 2020 12:36 pm PDT by
There are tons of hidden features and shortcuts for Macs that Apple has built into macOS over the years, ranging from shortcuts to keyboard commands to other little hacks to make Mac usage just a bit simpler. In our latest YouTube video, we highlighted several of these tips and tricks, and some of them might just be new to you. Subscribe to the MacRumors YouTube channel for more videos. Tr...

6.1-inch 'iPhone 12' Production to Begin in July Ahead of Other 2020 Models

Monday June 1, 2020 2:36 am PDT by
Volume production of Apple's forthcoming 6.1-inch "iPhone 12" models will start in July-August ahead of the rest of the company's flagship iPhone lineup this year, according to a new report by DigiTimes. Apple is widely rumored to be launching four new ‌iPhone‌ models in the usual September or October timeframe, although supply constraints and delays in production ramp-up could cause a...

Apple Releases iOS and iPadOS 13.5.1 With Fixes for Recent 'unc0ver' Jailbreak Vulnerability

Monday June 1, 2020 9:58 am PDT by
Apple today released iOS and iPadOS 13.5.1, minor updates that come a little over a week after the release of iOS and iPadOS 13.5, major updates that brought the Exposure Notification API, FaceTime changes, mask-related unlocking updates and more. The iOS and iPadOS 13.5.1 updates are available on all eligible devices over-the-air in the Settings app. To access the updates, go to Settings >...

Apple Introducing New Internal USB-C Diagnostic Tool

Sunday May 31, 2020 7:26 pm PDT by
Apple is introducing a new internal USB-C Diagnostic Tool as a successor to its existing Serial Number Reader, which can be used to both collect a device's serial number directly from its logic board and test power on a device itself. Image via Giulio Zompetti With only a Lightning version previously available, images have surfaced of a new USB-C Diagnostic Tool (UDT) that appears to be known ...

Powerbeats Pro Debut in Four New Colors: Spring Yellow, Cloud Pink, Lava Red, and Glacier Blue

Friday May 29, 2020 10:00 am PDT by
Following a couple of leaks in recent weeks, Beats today is officially announcing four new colors for its Powerbeats Pro wireless earphones: Spring Yellow, Cloud Pink, Lava Red, and Glacier Blue. The new earphones will go on sale June 9 and sell for the same $249.95 price as the existing color options. Aside from the colors, the new Powerbeats Pro models are otherwise identical to the...

Apple Releases macOS Catalina 10.15.5 Supplemental Update With Security Fix

Monday June 1, 2020 10:56 am PDT by
Apple today released a supplemental update for macOS Catalina 10.15.5, the fifth update to the macOS Catalina operating system that was released in October 2019. The supplemental update comes a week after the release of the macOS Catalina 10.15.5 update. ‌macOS Catalina‌ 10.15.5 is a free update that can be downloaded from the Mac App Store using the Update feature in the System...