Comcast announced a $65 billion bid for Twenty First Century Fox units that are currently in agreement to be acquired by Disney.
The bid announced Wednesday represents a 19 percent premium to Disney's offer. Comcast, the parent of CNBC offered $35 a share in cash.
Disney agreed in December to buy the majority of Fox for $52.4 billion in stock. The deal included Fox's movie studios, networks National Geographic and FX, Star TV, stakes in Sky, Endemol Shine Group and Hulu, as well as regional sports networks.
"These are highly strategic and complementary businesses, and we are in our minds the right buyer," Comcast's CEO Brian Roberts said on a call with investors.
In a letter to Fox's board and members of the Murdoch family released earlier, Roberts said, "We were disappointed when Fox decided to enter into a transaction with The Walt Disney Company even though we had offered a meaningfully higher price." He went on to say, "We are pleased to present a new, all cash proposal that fully addresses the Board's stated concerns with our prior proposal."
Comcast is planning for an increased bid from Disney that may include a cash component according to people familiar with the matter. Comcast believes it is better suited to offer cash because the market allows for a higher leverage ratio from a cable company with strong cash flows than a media company like Disney, which is accustomed to carrying lower leverage ratios the people said. A Disney bid with cash will also diminish the tax benefits for the Murdoch family, which controls Fox.
Source: The Verge
