Disney Sweetens Fox Offer to $71 Billion, Outbidding Comcast

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  • Deal would pay $38 a share for company’s entertainment assets

  • Comcast had made counteroffer for Fox’s operations last week

Walt Disney Co. raised its offer for 21st Century Fox Inc.’s entertainment assets to $71.3 billion, outbidding Comcast Corp. in a battle for one of the media industry’s biggest prizes.
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The $38-a-share price is about $10 a share higher than what Disney proposed in December — and $3 above Comcast’s bid from last week. Fox has accepted the offer, saying it provides more flexibility and other enhancements than the $65 billion Comcast deal.

The question now is how Comcast will respond. Chances are the cable giant will counterbid with something in the low-$40-a-share range, according to Jefferies Group LLC analyst John Janedis. But Disney may have another edge: It’s close to winning antitrust approval for its offer, according a person familiar with the matter. That means any bid from Comcast would come with more regulatory hurdles.

At stake is a trove of media properties, ranging from “The Simpsons” to “X-Men,” that may help fend off the threat from Netflix Inc. and other streaming upstarts. Both Disney and Comcast are looking to use the Fox assets to bolster their content and expand overseas.

READ THE REST OF THE STORY  HERE  AT THE BLOOMBERG BUSINESS NEWS SITE

Published on June 20, 2018 at 8:23 pm by clockwatcher

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