Mergers/Acquisitions News

Comcast persists with possible all-cash bid for Fox assets

Comcast plans to put up to $60bn in cash for the majority of the Fox’s assets, according to a report by Reuters. Comcast is in talks with investment banks to set up an all-cash bid for 21st Century Fox film and TV businesses. The bid would top Disney’s offer of $52bn.

As per media reports, Comcast is asking bankers to increase the loans it has to buy Sky so it can purchase the Fox assets as well.

Comcast shares have fallen about 15% since Disney announced its bid for Fox, and industry watchers believe Comcast’s proposed all-cash bid will stand a better chance, despite Fox Executive Chairman Rupert Murdoch reportedly preferring Disney shares.

Fox had rejected an earlier offer from Comcast that was 17% higher than Disney’s bid because of antitrust issues.

Comcast earlier this year made a bid for European satellite company Sky. Fox owns a big stake in Sky and its proposal to buy the remainder has been held up by British regulators.

According to industry observers, Comcast wants to demonstrate that its own passage through the regulatory path can be swift, unlike that of the Fox’s stalled bid for Sky.

There have been no official comments from Comcast, Fox and Disney on the new developments.