Market Overview

Comcast Prepared To Submit All-Cash Offer For Fox Assets

Comcast Prepared To Submit All-Cash Offer For Fox Assets

Comcast Corporation (NASDAQ: CMCSA) announced Wednesday that it may submit an all-cash offer to acquire Twenty-First Century Fox Inc Class A (NASDAQ: FOXA) at a premium to the Walt Disney Co (NYSE: DIS) price.

“Comcast Corporation confirms that it is considering, and is in advanced stages of preparing, an offer for the businesses that Fox has agreed to sell to Disney (which do not include the Fox News Channel, Fox Business Network, Fox Broadcasting Company and certain other assets),” the firm published in a press release.

Why It's Important

The competing offer would include risk, termination-fee and “New Fox” spinoff terms “at least as favorable” to Fox investors as the Disney terms are.

Comcast assured that its work to finance such a deal and file relevant regulatory documents are “well advanced,” although management has not yet decided to pursue the buyout.

The choice may not be made until June 12, when a ruling on the AT&T Inc. (NYSE: T)-Time Warner Inc (NYSE: TWX) merger is said to dictate the future of com-sector deals.

Comcast was down about 2 percent at time of publication while Fox was up about 1.2 percent.

Related Links:

Rosenblatt: Comcast Challenge For Fox Assets Could Reduce Arbitrage Discount

Everything We Know About Disney's Bid For 21st Century Fox Assets

Image credit: 21st Century Fox [Public domain], via Wikimedia Commons

Posted-In: M&A News Media Best of Benzinga


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