Disney raises bid for Fox to £54bn

DISNEY has raised its offer for 21st Century Fox’s entertainment businesses to £54bn in a bid to see off Comcast.

The US giant said it was willing to pay more and change its allstock offer to one of both cash and stock after a bidding war broke out. Assets being sold by Fox include its film and television studios, National Geographic, a 30pc stake in video website Hulu, Indian network Star and Fox’s stake in British broadcaster Sky.

Disney had originally offered £39bn, in a deal struck with Fox in December, but Comcast moved to trump that with a formal £49bn bid last week. But yesterday Fox and Disney announced a new deal, and claimed it was superior to the Comcast offer.

The respective chairmen, Rupert Murdoch and Bob Iger, first plotted the tie-up over wine at Murdoch’s estate in Bel-Air, Los Angeles, last autumn.

Iger said: ‘The acquisition of 21st Century Fox will bring significant financial value to the shareholders of both companies ... the combination of Disney’s and Fox’s unparalleled collection of businesses and franchises will allow us to create more appealing highquality content, expand our direct-to-consumer offerings and international presence, and deliver more personalized and compelling entertainment experiences.’

Murdoch added: ‘ We are extremely proud of the businesses we have built at 21st Century Fox, and firmly believe that this combination with Disney will unlock even more value for shareholders.’ Both Disney and Comcast are desperate to snap up Fox’s entertainment businesses so they can boost their defences against tech giants Netflix and Amazon, which have made huge inroads into television and film production.

It came a day after Disney agreed to buy Sky News, in a deal aimed at speeding up Fox’s attempted takeover of Sky in the UK.

Disney’s latest offer is about £28.80 ($38) per Fox share, compared to £26.52 ($35) offered by Comcast.