Last week, Comcast threw down the gauntlet as they challenged Disney & began a bidding war as they made an offer to buy up various assets that 21st Century Fox is trying to sell off.
As expected, Disney has hit back with their own latest bid.
Not only did the house of mouse meet the $65 billion bid from Comcast but they exceeded it, offering up $71.3 billion in cash and stocks, according to Deadline. Their bid is almost $19 billion more than their original bid that was accepted back in December, and this new bid offers up $38 per share in cash and stock and will take on $13.8 billion of Fox’s net debt making the total transaction to around $85.1 billion.
The recent court decision that allowed the $85 billion dollar purchase of Time Warner by AT&T, a deal that has already moved into action and caused some changes for Time Warner now to be known as Warner Media, has seemed to spur on this bigger bidding war.
Disney’s bid was made strategically to occur on the same day Fox executives are scheduled to have a meeting, but the original July 10 meeting that had been set to evaluate Disney’s last deal had already been previously postponed.
“We are extremely proud of the businesses we have built at 21st Century Fox, and firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace at a dynamic time for our industry,” said Rupert Murdoch, Fox’s Executive Chairman. “We remain convinced that the combination of 21CF’s iconic assets, brands, and franchises with Disney’s will create one of the greatest, most innovative companies in the world.”
Reportedly Fox has not concluded that the June 13 offer from Comcast would count as a “superior proposal” within the language of the existing merger deal that had been reached with Disney. The new offer still gives room for Fox’s board to evaluate a competing proposal should Comcast decide to dive even further into the bidding war.
Along with the 20th Century Fox movie & television studios, the deal would also give the winning bidder the FX Networks, National Geographic and a 30-percent stake in Hulu. This would include the rights to giant-properties like X-Men, Deadpool, Alien, Predator and so much more.