Fox To Decide on Disney Deal July 10, Could Still be Swayed By Comcast Bid
Twenty-First Century Fox could be making its final decision on the offer made by The Walt Disney Company on July 10th. In December, Disney offered stock worth $52.4 billion to buy Fox’s television, film, and international assets. Previously, Comcast had made an offer in November to also purchase Fox with stock, and the equivalent was higher than that of Disney’s offerings at $64 billion. Disney’s offer was agreed upon, though, but Comcast wasn’t giving up easily. Comcast is now planning to offer an all-cash bid to acquire certain assets of the company.
The July 10th date could be changed, though, if Comcast approaches with a bid worth considering. In the announcement made by Fox, the counter-offer being made by Comcast was acknowledged and stated that if it were to happen before the agreed-upon date, the meeting would either be adjourned or postponed to allow reasonable time to make a full review of the offer before making their final decision between the two.
In April, we told you that the Fox-Disney deal is expected to close by 2019. If the shareholders vote in favor of Disney’s bid, the chances of a 2019 final date is still looking good. Disney will acquire the 20th Century Fox Television studio, 20th Century Fox movie studio, and FX Networks. The remaining assets, namely Fox Broadcasting Company, Fox Sports and Fox News, will form a new company. Disney will lease office space on the Fox lot for seven years after the acquisition as they transition employees and other assets to the Walt Disney lot. The move should be a painless one for employees moving over and an exciting one for the current employees, as this merger will be a rebirth of focus for the company.
Of course, back in December, we thought the decision between Disney and Fox was a done deal and an announcement was set to be made. It didn’t seem like there would be anything to sway the new partnership. With the idea of an all-cash bid by Comcast, though, and the possibility of postponing the new July 10th date for stockholders, it seems as if the bid by Comcast will be taken seriously and Disney may possibly lose out.