Comcast challenges Disney with $65 billion bid for Fox

Comcast just made its move. On the heels of a federal judge’s decision that AT&T’s $85 billion acquisition of Time Warner should not be stopped for competitive reasons, Comcast has offered $65 billion in cash for 21st Century Fox film and TV studio assets.

The offer tops the $52 billion bid already made by the Walt Disney Co.

Comcast, a cable and internet provider that owns NBC Universal, said last month it planned an all-cash offer for the Fox studios and networks, but hadn’t named the price. Philadelphiabased Comcast had been expected to wait for the judge’s ruling in the Justice Department’s suit against AT&T-Time Warner before making a formal bid.

The offer, for $35 a share, represents a 19 percent premium to Disney’s allstock offer, Comcast said. Comcast also offered to reimburse Disney for the $1.525 billion break-up fee Disney would have to pay for ending its contract with Fox.

Fox shareholders have scheduled a meeting for July 10 to vote on the Disney merger, but Comcast said they are seeking an agreement before that.

Comcast was in talks to make an offer for Fox last year, but ceded to Disney when it looked like the Department of Justice was going to rule against the AT&T-Time Warner merger over antitrust concerns.

Despite their grip on the nation’s internet, phone and pay-TV needs, companies like Comcast, Verizon and AT&T are aggressively seeking to add new businesses. An entertainment library, such as shows produced by Fox’s studios and its regional sports networks, has emerged as a coveted alternative to the core subscription business now characterized by tepid wireless revenue growth and a shift by households to cut the cable cord.

The 21st Century Fox assets up for grabs include the historic 20th Century Fox movie studio, which has produced such classics as “Miracle on 34th Street,” “Alien,” “Titanic,” and the original “Star Wars” film, plus Fox’s television studio (“The Simpsons,” “Empire”) and FX and National Geographic channels. They also include a one-third stake in Hulu, Fox’s 22 regional sports networks and its stake in U.K.-based Sky.

A successful Comcast deal would be a blow to Disney and CEO Bob Iger, who has pinned Disney’s future to hit movies and TV shows it could gain with Fox.

And Disney’s hopes to secure the complete rights to “Star Wars” would also be thwarted by a Comcast deal.