Tags: murdoch | comcast | bid | disney | fox

Murdoch Open to Comcast Bid

(Dreamstime/Mira Agron)

By    |   Thursday, 07 June 2018 03:30 PM

Media titan Rupert Murdoch reportedly is no longer set on selling Twenty-First Century Fox to Walt Disney Co. for stock, but is looking to get maximum value for the assets, which leaves the door wide open for Comcast Corp. to swoop in with a big offer.

“Rupert, like his shareholders and Fox, are now fully aligned and simply want the best possible outcome, meaning the most dollars whether that's cash or cash and stock. He wants to maximize value and is not simply focused on Disney,” BTIG media analyst Rich Greenfield told Cheddar.

“I think this is a real opening for Comcast to come in with a very significant premium bid,” Greenfield said, citing various sources close to Murdoch and the deal.

Late last month, Comcast (CMCSA) had confirmed it was preparing a higher, all-cash offer for most of the media assets of Twenty-First Century Fox (FOXA), setting up a bidding war with rival Walt Disney  (DIS), which already has agreed to a $52 billion deal with Fox.

Greenfield explains that Comcast has riding on its battle against Disney. He said Fox would make Comcast a more significant global company. “Comcast is looking to globally diversify as well as to increase their content creation. Their studio is much much smaller than Disney. Disney is by far already the market leader,” he said.

He poined that that average U.S. consumers should probably be rooting for Comcast to defeat Disney in the Fox duel. 

“If you're a consumer, you know the reality is Disney combining all of Fox's regional sports networks as well as ESPN probably means that you know cable bundles are gonna get less flexible, meaning less chances of smaller, skinny bundles and you're gonna end up paying more for it,” Greenfield said.

“If Comcast wins, you know they're they don't have that ESPN sledgehammer that Disney has had for many years. And so my gut is is that consumers probably from a pricing standpoint on their monthly bills are probably rooting for Comcast,” he explained.

Comcast, the largest U.S. cable operator, said about two weeks ago it was in advanced stages of readying a bid that would be superior to Disney’s all-stock offer, Reuters reported.

However, sources say Comcast will only proceed if a federal judge approves AT&T Inc.'s (T) planned $85-billion acquisition of Time Warner Inc. (TWX).

Disney in December offered stock then worth $52.4 billion to buy Fox's film, television and international businesses to beef up its offering against streaming rivals Netflix Inc. (NFLX) and Amazon.com Inc. (AMZN) 

A regulatory filing in April showed Comcast offered to buy most of Fox's assets in an all-stock deal valued at $34.41 per share, or $64 billion last November, just before Disney's offer was agreed upon, Reuters has explained.

(Newsmax wire services contributed to this report).

© 2018 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Media titan Rupert Murdoch reportedly is no longer set on selling Twenty-First Century Fox to Walt Disney Co. for stock, but is looking to get maximum value for the assets, which leaves the door wide open for Comcast Corp. to swoop in with a big offer.
murdoch, comcast, bid, disney, fox
466
2018-30-07
Thursday, 07 June 2018 03:30 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved