Comcast Makes Competitive Offer For Fox In Face Off With Disney
The largest provider of cable television in the nation, Comcast, made an offer of $65B in cash to buy 21st Century Fox’s film and TV studios. The bid comes after the already existing Disney bid of $52.4B, all stock. Movies franchises such as Deadpool, X-Men, Planet of the Apes, and Ice Age all belong to Fox. The combination of Comcast and Fox would join Fox to NBC Universal properties and NBC TV channels that include Bravo and SyFy.
Whichever company purchases Fox, will most likely become the controlling owner of Hulu, which is currently 30% owned by each of the three mentioned companies. Hulu seems to be a very important part of the deal.
When broken down, the Comcast offer comes out to $35 per share in cash, which according to Comcast is a 19% premium over the Disney offer. Along with the purchase, Comcast has proposed to pay the $2.5 billion breakup fee Fox had agreed with Disney upon, and the $1.53 billion fee that would’ve been paid to Disney.
Fox has stated that its agreement with Disney still stands but it “will carefully review and consider the Comcast proposal.”
The new deal comes almost a day after the ruling of a federal judge that the telecommunication giant AT&T could purchase Time Warner, just the first of what is predicted to be an onrush of deals brought on by the traditional entertainment powerhouses and service providers looking to outwrestle the increasing competition of Google, Facebook, and Netflix.
With this deal comes a threat to a glorious Marvel reunion. Disney, film right owners to the Avengers, would have the power to unify the comic-book universe with Fox’s rights to X-men and the Fantastic Four.
“Disney’s acquisition of Fox represents the epicenter of Disney’s streaming endeavors, and Comcast entering the Fox sweepstakes is a game of high-stakes poker that could change the course of the media and streaming landscape for decades to come, depending on which direction this deal heads.” – Daniel Ives, an analyst at GBH Insights.
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