Published: Wed, May 09, 2018
Markets | By Terence Owen

Fox shares rise 3 pct on potential Comcast offer

Fox shares rise 3 pct on potential Comcast offer

At the end of previous year, Walt Disney announced that it would be acquiring Fox - for a cool $52.4 billion (£39 billion), no less, making it a pretty big deal. Fox originally bid for the majority share in Sky it doesn't already own with plans to turn it around and sell it to Disney.

The report comes after Comcast offered a $31 billion bid to purchase the European broadcaster Sky in February, beating out an early entry from Fox for all of Sky. If Disney gets into a bidding war with Comcast, then Comcast's bid for all of Sky and Fox could get close to $100 billion, these people said.

According to Reuters, Comcast is now talking to several investment banks to prepare a $60 billion cash bid for 21st Century Fox. By U.K. law, Disney would have to make an offer for all of Sky if it were to acquire Fox's 39% interest.

June 12 marks the day that D.C. federal judge Richard Leon has set for a ruling in the government's anti-trust trial against the AT&T and Time Warner merger. That opened the door to Comcast's counteroffer.

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Regulatory concerns aside, Fox last month viewed Disney's stock as "more valuable than Comcast's, based on historic prices, and felt that a deal between Disney and Fox would generate greater long-term value", says Reuters. Comcast's stock fell 5.5 percent Tuesday to $30.59 in response to the news.

For those unaware, Comcast was another corporate entity that proposed to acquire 21st Century Fox past year. After Disney seemingly had firm control of the situation after announcing the deal last December, the road to acquisition has not been as smooth as the House of Mouse would probably have preferred, as Comcast has now thrown its hat back into the ring.

Fox will separate the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, its sports channels FS1, FS2 and the Big Ten Network, into a newly listed company that it will spin off to its shareholders. This article is strictly for informational purposes only.

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