As the earlier news break goes, Walt Disney had agreed to buy most of 21st Century Fox’s assets in a deal worth $52.4 billion. Whereas, the present situation has gone complicated due to Comcast’s rival offer valuing the business at $65 billion.
According to the first report released by CNBC, Disney will revise its original offer by adding cash to its bid to buy majority of 21st Century Fox. The offer of $52.4 billion in stock made last year has grown to be worth about $55.5 billion in value. However, Comcast entered the negotiations with a cash offer of $65 billion, and Mouse House is expected to counter the latest bid with its offerings.
On Wednesday, Fox’s board meets to discuss Comcast’s bid and conclude which becomes their superior offer. If the decision leans towards the higher bid, Disney will have limited time to raise its offering. Though Comcast’s offer is higher than Disney, the board can favour Disney by allowing them to revise their bid amount. Comcast CEO, Brian Roberts, has shared his disappointment in a statement. Adding to it, he says that with Comcast’s new all-cash proposal, it endeavours to address Disney’s earlier stated concerns.
Now, Fox has to analyse Comcast’s financials and evaluate the seriousness of the company. Also, it has to come to a conclusion whether to accept stocks or cash, which would impact on tax benefits and rise in value on long run. The decision will also affect the stock-market value of these companies once the decision is out.
If Disney wins the deal, it will be beneficial more or less as it is already at its peak of success. Whereas, if Comcast lands the deal, the Fox assets would boost its international presence and offer an edge to its entertainment units on internet-based video streaming such as Netflix.
