What Comcast Buying Fox Instead Of Disney Would Mean

What Comcast Buying Fox Instead Of Disney Would Mean

The original Fox-Sky combination has also been further complicated by Fox's agreement to sell many of its TV and film assets to Walt Disney Co, including its stake in Sky, for US$52 billion.

A handful of notes from Wall Street analysts said Comcast's involvement was likely to push Disney to raise its existing offer. However, if the government does not approve, then Comcast has no intention of placing a bid. This mirrors Comcast ongoing attempt to outbid Fox for the park of Sky that they do not own.

Murdoch agreed to sell US entertainment assets - though not the highly profitable Fox News Channel - to Disney, rejecting a higher offer for those assets from Comcast.

But regulatory fears could wane if a federal judge allows AT&T Inc.to acquire HBO-owner Time Warner Inc. The outcome of the case, which is expected to be announced in June, will determine whether or not Comcast makes the bid.

Fox has been trying to win approval from the United Kingdom to buy the remainder, but those plans were disrupted last month after Comcast made a $22bn offer for the United Kingdom broadcaster.

If Disney can get past this Comcast roadblock and seal the deal with Fox, "it will be a major driver of future growth for the entertainment heavyweight, supporting the company's foray into online streaming business in a big way", wrote Anwar.

As part of the historic deal, Disney would acquire 21st Century Fox's critically acclaimed film production businesses, including 20th Century Fox, Fox Searchlight Pictures and Fox 2000 - the homes of Avatar, X-Men, Fantastic Four, Deadpool, The Grand Budapest Hotel, Hidden Figures, Gone Girl, The Shape of Water, The Martian and much more.

Comcast has circled the Fox assets for months.

It is possible Comcast could bid a bit lower than last time if it pursues a hostile effort, one of the people familiar with the situation said. Murdoch was concerned about the reaction of Washington regulators to a deal with Comcast.

Comcast has already made a formal unsolicited $31 billion offer in Europe for Sky satellite-TV business, which is partly controlled by Murdoch. Shares of Disney (DIS) closed Tuesday down 72 cents, or less than 1 percent, to $101.79 on the New York Stock Exchange.

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