Wednesday, June 13, 2018
Comcast Offers $65B Cash For Fox
UPDATE 6/13/18 4:15 PM: Comcast offered Fox shareholders $35 a share in cash and 100 percent of the shares of the company left behind after the deal. The deal is a 19 percent premium to the value of Disney's offer as of noon on Wednesday. The announcement comes one day after a federal judge cleared the way for AT&T's megadeal for Time Warner, a decision that is expected to unleash a wave of big mergers.
In essence, Tuesday's decision is as much a win for Comcast as it is for AT&T, analysts said. In a move that could fundamentally reshape the company, Comcast can now proceed with the all-cash hostile bid for parts of 21st Century Fox according to philly.com.
Analysts say that Comcast’s bid to buy Fox now faces a higher likelihood of regulatory approval.
As early as Wednesday, Comcast is expected to offer $60 billion for the Fox regional sports networks, the FX cable channel, Fox movie and television studios, Fox international channels, and Fox’s 39 percent stake in the Sky satellite-TV business in Europe. Such a bid could increase Comcast’s debt to $164 billion, according to Moody’s Investors Service, making Comcast the second most indebted company in the world behind AT&T/Time Warner.
Leon announced his decision after the stock market closed on Tuesday, and Comcast shares slumped 4 percent in after-market trading on fears that it would overpay for Fox.
But shares in entertainment companies and potential targets of new deals rose sharply. CBS shot up about 5 percent and Fox jumped 7 percent in after-market trading on hopes that it would be the subject of a bidding war between Comcast and Disney.
Comcast had no comment on Tuesday night. Its potential Fox deal would be similar to AT&T/Time Warner by combining a cable and internet businesses with TV channels, news, sports, and other entertainment.
Posted 4:20:00 PM