Comcast Corp. on Wednesday announced that it is preparing to challenge The Walt Disney Co. to try to acquire certain 21st Century Fox assets.
Disney previously announced that it would acquire the media corporation for $52.4 billion in stock. Comcast said it is preparing an all-cash offer “at a premium to the value of the current all-share offer from Disney.”
“While no final decision has been made, at this point the work to finance the all-cash offer and make the key regulatory filings is well advanced,” the company said in a statement. “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 Disneyoffer.”
The move by the cable giant comes after 21st Century Fox announced that Lachlan Murdoch would serve as chief executive officer of the new entity that would form after the close of the proposed transaction with Disney.
“We look forward to making further announcements as to the management and structure of this new Fox as we get closer to closing our proposed transaction with Disney,” Murdoch said in a statement.
The acquisition still requires shareholder and regulatory approval. It does not include Fox News Channel, Fox Business Network, and other assets.
Fox declined to comment on the Comcast offer, but Murdoch previously reaffirmed the company’s desire to complete the Disney transaction.
“We are committed to our agreement with Disney and are working through the conditions to bring it to a closing. In addition, our Directors, though, of course are aware of their fiduciary duties on behalf of all shareholders,” he told investors.
A Disney spokesperson did not immediately respond to request for comment.
