Comcast® Makes a $65 Billion Bid for Media Assets of 21st Century Fox

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Earlier this year, it was reported that Comcast® would proceed with an all-cash bid for 21st Century Fox if AT&T’s proposed acquisition of Time Warner® gets a regulatory approval. Recently, the US District Court Judge, Richard Leon, declared that the vertical merger between AT&T® and Time Warner® is legal. So, as expected, Comcast® has come up with the all-cash bid that was announced last week.

Comcast® has made a $65 billion bid for the media assets of 21st Century Fox on June 13, a day following the judge’s ruling on AT&T® – Time Warner® merger. In fact, the cable operator is not alone in the bidding process, as Walt Disney Company has also made a $52.4 billion bid for 21st Century Fox’s entertainment assets. It remains to be seen as to which bid the media empire owned by Rupert Murdoch will accept. It is also possible that a bidding war will ensue, especially if Walt Disney Co. and Comcast® try to outbid each other.

The ruling in favor of AT&T® hinted that more companies might come up with strategic offers in a bid to acquire rival firms and consolidate products and services or position in the market. Still, the focus remains on which company will acquire 21st Century Fox’s media assets. Walt Disney’s bid for the bulk of Rupert Murdoch’s media empire, which includes the studio named 20th Century Fox, is an all-stock one. If Disney’s bid gets accepted, then it is likely that Marvel Studios would get back the characters which were licensed to 21st Century Fox. Avid fans of the Avengers franchise would know that Marvel Studios is owned by Walt Disney Co., so an X-Men and Avengers reunion is quite possible depending on how things unfold.

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On the other hand, in case Comcast Corporation® acquires Fox, it could reduce the appeal of Disney’s planned streaming service, which would feature shows and films from Stars Wars franchise and Marvel Cinematic Universe. The telecommunications company owns one of the best cable providers in the US namely Comcast Cable® and Xfinity® that offers cable, telephone, and internet bundles.

Comcast’s bid came after the close of share trading, yet Wall Street expected a bidding war to ensue soon after. We would have to wait to know if that is going to be the case, while Fox’s shares leapfrogged to an all-time high.

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