Disney tops Comcast’s bid, agrees to pay $71.3 billion for swath of Fox

NEW YORK (TNS) – Walt Disney Co. and 21st Century Fox struck a new deal Wednesday: Disney agreed to pay $71.3 billion for Fox entertainment assets, surpassing the $65-billion offer from Comcast Corp.

Disney said it amended its original Dec. 21 agreement with Fox in which Disney offered $52.8 billion.

Fox said the amended deal is “superior” to the offer made by Comcast. Its board accepted Disney’s offer, although the acceptance is subject to shareholder approval and does not rule out evaluating a competing bid.

Under the new Disney deal, Fox shareholders would receive $38 a share in either cash or Disney common stock, or a 50-50 combination of cash and Disney stock.

“We … firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace at a dynamic time for our industry,” Rupert Murdoch, Fox’s executive chairman, said in a statement. “We remain convinced that the combination of 21CF’S iconic assets, brands and franchises with Disney’s will create one of the greatest, most innovative companies in the world.”

Disney wants the Fox assets – which include the company’s movie studio, entertainment cable networks and TV production units – to expand its global reach and build a library of content that can be offered as a direct-to-consumer streaming service that can compete with Netflix.

“The acquisition of 21st Century Fox will bring significant value to the shareholders of both companies, and after six months of integration planning we’re more enthusiastic and confident in the strategic fit of the assets and the talent at Fox,” Disney Chairman Robert Iger said.