Comcast makes formal $65B bid for Fox, confidently includes massive breakup fee

Comcast makes formal $65B bid for Fox, confidently includes massive breakup fee

This follows yesterday's USA court approval of the merger of AT&T and Time Warner, which was widely expected to lead Comcast to make a new bid for Fox and, in the long-term, set the stage for broader consolidation between ISPs and media companies.

Encouraged by this week's AT&T merger victory, Comcast has formally made a $65 billion all-cash offer for 21st Century Fox's TV and film assets in a latest example of USA merger mania under the Trump administration. For Disney, a successful Comcast bid could make Disney's planned streaming service less attractive, without the Fox video.

The Comcast bid is nearly 20 percent higher than Disney's original, all-stock offer of $52.4 billion.

It had previously approached Fox about a potential deal, back in November, but its efforts had been rebuffed and Fox had instead recommended an all-stock deal with Disney.

The deal focuses on the famed Fox Hollywood film and television studios, along with its cable entertainment networks and global TV businesses.

Murdoch, 87, also wasn't swayed by Comcast's overtures partly because the cable company didn't offer a breakup fee.

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Comcast is already seeking to buy a 61-percent stake in European pay-TV group Sky, and would like to acquire the rest, now controlled by Rupert Murdoch's 21st Century Fox.

After a federal judge ruled on Tuesday that AT&T could buy Time Warner, investors poured into some stocks while unloading others. This new offer puts that situation in flux and promises to put Comcast and Disney at odds as they try and maneuver against each other for Fox's assets. Both Comcast and Disney have their own stakes in Hulu, and whoever gets Fox would control the majority.

The move follows a previous bid being rebuffed a year ago. Comcast will reportedly prepare and $60 billion all-cash offer, which they intend to offer in the next 24 to 48 hours, according to BTIG Analyst Rich Greenfield. It has been reported though that Fox execs are still leaning towards Disney and have asked their shareholders to do the same.

Disney and Comcast could even end up splitting ownership.

Fox said it would "carefully review and consider" the offer.

Fox is set to vote on the Disney acquisition proposal on July 10, when Comcast plans to ask shareholders to reject the bid in favor of its offer. Meanwhile, shares of Time Warner twx , up only 3% the past week, gained another 4%. We'll be sure to keep you up to date as new information regarding the Fox sale is made available.

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