COMCAST GIVES UP. “…Disney already secured clearance from the U.S. Justice Department..” By Todd Horwitz, Bubba Trading

 

Comcast Drops Bid for Fox

Disney has won the war for 21st Century Fox. Comcast announced Thursday that it will drop its pursuit of the 21st Century Fox assets that it was fighting over with Disney. Comcast had bid $65 Billion for Fox’s movie studio, which is responsible for franchises like “Avatar” and “X-Men,” along with Fox’s regional sports networks and cable channels like FX and National Geographic. Disney’s most recent bid was $71 billion.

Assuming Disney wins all necessary regulatory approvals abroad—it already secured clearance from the U.S. Justice Department—it will wind up with such businesses as the Twentieth Century Fox film and TV studio, a controlling stake in streaming-video service Hulu, and international properties including Fox’s Sky stake and Star India.

“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,” Comcast Chief Executive Brian Roberts said on Thursday. 

Comcast executives remain focused on winning Sky, which they view as a mini-version of Comcast-NBCUniversal that could give them a boost in the global streaming race. The cable-and-entertainment giant has offered to buy Sky for £14.75 ($19.28) a share in cash, valuing the company at $34 billion, a 5% premium to the latest offer from Fox, which has been trying since 2016 to buy the rest of Sky.

Disney has indicated in regulatory filings that it is in charge of whether Fox continues pursuing Sky. Disney still hasn’t decided if it will to Comcast’s bid, people with knowledge of Disney’s thinking said, but some analysts and people close to Comcast have argued that it might be smarter to sell Fox’s Sky stake to Comcast, rather than spend tens of billions of dollars to buy a big pay-tv distributor that may not be a key part of Disney’s future.

Keep those stops tight
Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial Markets & Political Commentary

 

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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.