Disney poised to snag Fox as Comcast bails
The Mouse House wins. Comcast on Thursday gave up its pursuit of Twenty-First Century Fox’s entertainment assets — opting to concentrate its energies on bidding for Sky, the UK satellite-TV giant.
The move by Comcast, helmed by Brian Roberts, clears the path for Disney to grab the Fox assets — which include 20th Century Fox, the Hollywood studio, the Fox TV studio, its stake in Hulu, its regional sports networks and its 39 percent stake in Sky.
Disney’s latest bid for the Fox assets, at $71.3 billion, topped an offer from Comcast.
Onthe news, Comcast shares closed up 2.6 percent, to $34.91 — while adding as much as 3.6 percent in after-hours trading. Fox shares lost 12 cents, to $46.20, while Disney shares gained 1.3 percent, to $112.13.
“Fromthe very outset, Comcast has looked to be wrong-footed in its quixotic pursuit of Fox,” said analyst Craig Moffett of Moffett Nathanson, who called Comcast’s decision on Thursday “welcome news.”
Fox shareholders are scheduled to vote on the Disney deal on July 27.
Comcast, which is looking to build its business internationally, has made a bid for Sky that values the company at $34 billion — 5 percent more than the latest bid from Fox, which is looking to acquire 100 percent of the company. The battle should be intense, analysts said. “Comcast hurt Disney already by making them pay more for Fox,” BTIG analyst Rich Greenfield said. “Why would Disney allow them to have Sky? If I’m Disney, I’ve got Comcast against the ropes and I’m delivering the knockout punch.”
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