Comcast Drops Bid & Disney Wins 21st Century Fox War
Dow 30 Component, The Walt Disney Company (DIS), and its subsidiaries is a diversified worldwide entertainment company that operates in four business segments: Studio Entertainment, Media Networks, Parks and Resorts, and Consumer Products & Interactive Media.
With Walt Disney’s sweetened offer of $71.3 billion for Twenty-First Century Fox Inc’s entertainment assets, Comcast Corp has dropped its $66 billion bid for fox. Despite the withdrawal, Comcast says it will still try to buy European broadcaster Sky Plc in an attempt to increase its international footprint.
Comcast’s bid drop cools one of the media industry’s most high profile confrontations, but it still leaves the opportunity for a potential bidding war for Sky. Sky is 39% owned by Fox and Fox has made an offer the rest of Sky that it does not own. Comcast is still the highest bidder for the European broadcast with 14.75 pounds per share or $34 billion.
Both Fox and Sky saw drops in their shares, Fox’s fell 1.7% and Sky’s dropped 2.6%. Comcast states one of its reasons for dropping the Fox bid is that the bidding war was inflating the value of Sky because of Fox’s partial ownership in the company. Other concerns about the Fox bid were the price becoming too high and the amount of revenue Comcast could lose in divesting some of the Fox assets to appease U.S. antitrust regulators.
More on Comcast’s Decision and Disney’s acquisition of Fox can be found here.
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