Comcast Corp.is seeking to raise tens of billions of dollars in financing for a possible new offer for 21st Century Fox entertainment assets that the Walt Disney Co. has agreed to purchase for $52 billion, according to a Reuters report.
(21st Century Fox) today announced that they have entered into a definitive agreement for Disney to acquire 21st Century Fox, including the Twentieth Century Fox Film and Television studios, along with cable and global TV businesses, for approximately $52.4 billion in stock (subject to adjustment). That decision is expected in June from U.S. Disctric Court Judge Richard Leon.
Hope Corrigan is an Australian freelance writer for IGN.
A handful of notes from Wall Street analysts said Comcast's involvement was likely to push Disney to raise its existing offer.
Shares in Rupert Murdoch's 21st Century Fox rose overnight on the speculation. Reuters reported that Comcast asked investment banks to make the money available in order to outbid Disney for Fox's media conglomerate. On April 25, it announced a $31 billion acquisition offer for Sky, the British satellite service 39% owned by Fox. The EC has the power to clear Comcast's £22 billion bid with or without conditions or it can kick off a four-month investigation if it has concerns about the deal. The Roberts family controls Comcast through a dual-class stock structure.
Comcast, meanwhile, has seen its share price decline about 25% since it made its Sky bid in February, with investors frustrated that the cable company isn't using its free cash to institute stock buybacks.
Comcast's stock has dropped since then, from around $38 to about $32 now, giving the company a market capitalization of $149 billion. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.