THE FIGHT FOR FOX. Disney Raises Bid for Fox

. Fox’s board of directors said Disney’s latest offer was “superior”..By Todd Horwitz, Bubba Trading

 

Walt Disney Co raised its bid for the bulk of Twenty-First Century Fox Inc’s film and television assets to $71.3 billion on Wednesday, sweetening its deal with cash as it looks to upend Comcast Corp’s $65 billion offer.

The new cash-or-stock deal may be attractive to Fox’s largest shareholder, Rupert Murdoch, who owns 17 percent voting shares along with his family. The Murdoch’s face a large capital gains tax bill under Comcast’s all-cash offer. Disney’s previous offer was all stock. Fox’s board of directors said Disney’s latest offer was “superior” to the proposal made by Comcast and would create “one of the greatest, most innovative companies in the world.”

Fox shares were up 7.3 percent Wednesday, while shares of Disney rose around 1 percent. Disney CEO Robert Iger said on a conference call that Disney does not expect to complete the $20 billion share buyback it announced in December. Shares of CNBC parent Comcast jumped 1.8 percent Wednesday, moving after Bloomberg News reported that the Justice Department was set to approve Disney’s bid in as soon as two weeks. The company has agreed to sell some assets to gain approval, a source told Bloomberg.

The Justice Department, Fox and Disney did not respond immediately to requests for comment from CNBC. Comcast declined to comment. In a statement on Wednesday, Murdoch said, “We are extremely proud of the businesses we have built at 21st Century Fox, and firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace at a dynamic time for our industry.

“

The statement added, “We remain convinced that the combination of [Fox’s] iconic assets, brands and franchises with Disney’s will create one of the greatest, most innovative companies in the world.” Iger said in a statement Wednesday that the combination with the Fox units would allow Disney to create more appealing content, expand its direct-to-consumer offerings and international presence and “deliver more personalized and compelling entertainment experiences to meet growing consumer demand around the world.”

Keep those stops tight
Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial Markets & Political Commentary

 

Tags

, , , , , , , , ,

Related Posts

About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.