Facing pressure from cable giant Comcast, the Walt Disney Co. on Wednesday increased its bid to acquire 21st Century Fox to $71.3 billion in cash.
Fox, in a statement, called Disney’s offer “superior” to Comcast’s $65 billion all-cash offer.
“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,” executive chairman Rupert Murdoch said. “We remain convinced that the combination of 21CF‘s iconic assets, brands and franchises with Disney‘s will create one of the greatest, most innovative companies in the world.“
A Comcast spokesman declined to comment. The company submitted its bid after a judge earlier this month ruled against the Department of Justice in its attempt to block the merger between AT&T and Time Warner. That decision is expected to result in a flurry of deals, as the consolidation between Internet service providers and content creators heats up.
Under the revised agreement, Disney would pay roughly $35.7 billion in cash and issue nearly $343 million in stock to Fox shareholders to acquire movie studio 20th Century Fox, the company’s vast cable television network and its 30 percent stake in Hulu, among other assets. Disney will also assume $13.8 billion of Fox’s debt.
“The acquisition of 21st Century Fox will bring significant financial value to the shareholders of both companies, and after six months of integration planning we’re even more enthusiastic and confident in the strategic fit of the assets and the talent at Fox,” Robert Iger, Disney’s chief executive officer, said in a statement.
Under the terms of both the Comcast and Disney offers, Fox News, Fox Sports 1 and the company’s broadcast network would be spun off into an entity called “New Fox.”
Fox shareholders were slated to meet on July 10 to vote on Disney’s offer, but the company delayed that gathering to a still undetermined date to “provide stockholders the opportunity to evaluate the terms of Disney’s revised proposal and other developments to date.”
Disney said the transaction “has a clear and timely path to regulatory approval.” The company’s stock rose 1.08 percent in premarket trading to $107.25 per share. Fox’s stock rose 6.75 percent to $47.73 per share and Comcast’s stock rose 1.52 percent to $33.31 per share.
