Comcast jumps Disney with $65B bid for Fox
NEW YORK — Comcast made a $65 billion bid Wednesday for Fox’s entertainment businesses, setting up a battle with Disney to become the next megamedia company.
The bid comes just a day after a federal judge cleared AT&T’s takeover of Time Warner and rejected the government’s argument that it would hurt competition in cable and satellite TV and jack up costs to consumers for streaming TV and movies.
The ruling signaled that Comcast also could win regulatory approval; its bid for Fox shares many similarities with the AT&TTime Warner deal.
Comcast said its cash bid is 19 percent higher than Disney’s stock offer.
The Wall Street Journal and others reported earlier that Comcast had lined up $60 billion in cash to challenge Disney for media mogul Rupert Murdoch’s company.
The battle for TwentyFirst Century Fox comes as traditional entertainment companies try to amass more content to compete better with technology companies such as Amazon and Netflix for view- ers’ attention — and dollars.
If the Comcast bid succeeds, a major cable distributor would control even more channels on its lineup and those of its rivals.
That could lead to higher cable bills or make it more difficult for online alternatives to emerge, though there is not yet evidence of either happening following other mergers
For Disney, a successful Comcast bid could make Disney’s planned streaming service less attractive, without the Fox video.
Content is becoming more important as ways to deliver content proliferate. Cable companies like Comcast are no longer competing only with satellite alternatives such as DirecTV, but also standalone services such as Netflix and cable-like online bundles through Sony, AT&T and others.
Disney already started its own sports streaming service and plans an entertainment-focused one late next year featuring movies and shows from its own studios, which include Marvel, Pixar and “Star Wars” creator Lucasfilm.
With the Fox deal, Disney would get more con- tent for those services — through the studios behind the Avatar movies, “The Simpsons” and “Modern Family,” along with National Geographic. Marvel would get back the characters previously licensed to Fox, reuniting X-Men with the Avengers.
Comcast has been leading the way in marrying pipes with the entertainment that flows through them. It bought NBCUniversal’s cable channels and movie studio in 2013 and added Dreamworks Animation in 2016.
The Philadelphia company has been tinkering with the traditional cable bundle, offering standalone subscriptions for some types of video along with smaller bundles of cable channels delivered over the internet. Comcast has said it will add Netflix to some cable bundles.
With Fox, Comcast would expand a portfolio that already includes U.S. television rights to the Olympics and comedy offerings such as “Saturday Night Live.”
Whichever company prevails would also control Fox’s cable and international TV businesses. That’s key for Comcast, which doesn’t have an international presence.
Comcast says its cash bid for Fox entertainment is 19% higher than Disney’s stock offer.