Disney makes $70.3 billion counterbid for Twenty-First Century Fox

Carla Harmon
June 20, 2018

In a statement, Fox said the new deal is significantly better than Disney's earlier offer and "is superior to the proposal made by the Comcast Corporation".

Fox's board said it still has the right to weigh competing offers, signaling that the bidding war for its assets could continue.

Disney has increased its offer to purchase 21st Century Fox, once again taking the reigns from Comcast and becoming the highest bidder.


That potentially puts Murdoch, who remains the most powerful voice inside the company, at odds with some Fox shareholders who would be open to abandoning the Disney deal if Comcast's cash offer was high enough.

FILE PHOTO: The Twenty-First Century Fox Studios flag flies over the company building in Los Angeles, California U.S. November 6, 2017. AT&T just bought Time Warner for $81 billion, after a federal judge rejected the government's antitrust concerns.

Disney will also take on about $13.8 billion of Fox's net debt, implying a total transaction value of about $85.1 billion.


If you're anxious about not being able to see the X-Men team up with the Avengers, an analyst from B. Riley recently discussed the probability of Disney obtaining the rights to the Marvel characters even if Comcast winds up purchasing 21st Century Fox.

Disney no longer expects to complete the $20 billion share repurchase it announced in December, McCarthy said.

The collar on the stock consideration will ensure that 21st Century Fox shareholders will receive a number of Disney shares equal to $38 in value if the average Disney stock price at closing is between $93.53 and $114.32. Part of the business will be used to create an entity called "New Fox", which will include the highly lucrative Fox News, the sports channels FS1 and FS2, and the Fox broadcasting channel. "At a time of dynamic change in the entertainment industry, the combination of Disney's and Fox's unparalleled collection of businesses and franchises will allow us to create more appealing high-quality content, expand our direct-to-consumer offerings and global presence, and deliver more personalized and compelling entertainment experiences to meet growing consumer demand around the world". Fox CEO Rupert Murdoch said the company "firmly believes" that the combination with Disney is a good fit. Disney edged up 89 cents to $106.99 while Comcast rose 8 cents to $32.89.


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