Comcast Officially Bows Out of Bidding War for Fox
The Disney-Comcast bidding war over 21st Century Fox’s assets has officially ended with a concession statement from Comcast themselves, who are now looking to focus all their energies on buying a majority share of Sky (the European TV giant) instead.
When it was first announced that 21CF was looking for a buyer, Comcast became the runner-up as other runner-ups (including Sony Pictures and Verizon) quickly stepped in, only to ultimately bow out. Comcast would join them shortly before Disney and Fox signed on for a $52B+ deal. However, Comcast later prepared a counterbid of $65B once the merger between AT&T and Time Warner was officially approved by the Department of Justice, which they then submitted and Fox actually considered. Disney subsequently fired back with a $71B+ offer, and now it looks as though bidding any higher is not their rival’s interests.
“Comcast does not intend to pursue further the acquisition of the 21st Century Fox assets and, instead, will focus on our recommended offer for Sky,” the cable giant released in a statement. The company’s CEO Brian Roberts also added a statement of support for Disney, noting “I’d like to congratulate [chairman and CEO] Bob Iger and the team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company.”
Disney getting DOJ approval (with the concession of having to divest a few Fox Sports assets), when coupled with the DOJ’s recent appeal of the ruling on the AT&T/Time Warner case that would complicate a Comcast/Fox merger, seems to be the final nail in the coffin for their bid for 21CF. In the meantime, it appears as though Disney and Fox will stop looking at a bidding war against Comcast for the remaining 61% of Sky that they don’t own, which Comcast is seeking to get with a $34B bid. Quid pro quo.
Disney CEO Bob Iger was suitably thrilled upon learning that he wouldn’t have to plan any further counterbids to acquire Fox. “Our incredible enthusiasm for this acquisition and the value it will create has continued to grow as we’ve come to know 21st Century Fox’s stellar array of talent and assets. We’re extremely pleased with today’s news, and our focus now is on completing the regulatory process and ultimately moving toward integrating our businesses.”
Grant Davis is a freelance writer who has covered entertainment news for more than seven years. His articles have frequently appeared in Star Wars News Net as well as as other entertainment-related websites. As someone who grew up on Star Wars and comic book movies, he’s completely thrilled with the current era of genre entertainment.
