Published: Wed, May 09, 2018
Finance | By Cynthia Curry

Comcast threatens to derail Disney-Fox deal

Comcast threatens to derail Disney-Fox deal

That decision is expected in June from U.S. Disctric Court Judge Richard Leon. The expectation on the Comcast side is that a higher all-cash offer from Comcast to Disney's cash-and-stock bid would force 21st Century Fox to engage in takeover talks. That opened the door to Comcast's counteroffer.

Last December, Disney announced they would acquire Fox's film, television and global businesses in an attempt to combat the growing threat of streaming giants Netflix and Amazon.

Rupert Murdoch, who owns a almost 17-per cent stake in Fox and holds about 40 per cent of the voting power, prefers to be paid in stock rather than cash for the Fox assets, since an all-stock offer will not be taxable for shareholders, Reuters said.

Sources told the outlet Comcast has been speaking with investment banks about getting ahold of bridge financing to stop the deal between Disney and Fox.

This funding could be up to an additional $60 billion USD on top of the $30 billion USD Comcast has already offered for a majority stake in European pay-TV group Sky Plc.

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As Reuters explains, Comcast exhausted to buy Fox past year but the deal never went through reportedly due in part to antitrust concerns.

Fox shares rose 5.13 percent to $39.99 on the news in after-hours trading in NY on Monday.

For those unaware, Comcast was another corporate entity that proposed to acquire 21st Century Fox previous year.

For one, Bibb believes that Fox's biggest shareholder, Rupert Murdoch, would prefer the lack of tax complications that go with an all-stock deal. It is not clear how receptive he would be to an all-cash offer. The Roberts family controls Comcast through a dual-class stock structure.

Shares of Fox were last up 2.2 percent at $38.86. That deal came after Fox rejected a bid from Comcast in November to buy its networks, movie studios, TV production and foreign assets.

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