Comcast preps Fox offensive with new bid

Comcast only plans to proceed with the bid if a federal judge allows AT&T's planned $85 billion acquisition of Time Warner to proceed. Matt Rourke  AP

Comcast only plans to proceed with the bid if a federal judge allows AT&T's planned $85 billion acquisition of Time Warner to proceed. Matt Rourke AP

Though Walt Disney Co. is already first in line to acquire part of 21st Century Fox, Comcast could potentially derail the arrangement by offering Fox a $60 billion all-cash offer.

According to Reuters, Comcast CEO Brian Roberts will only push the deal forward if AT&T's massive $85 billion takeover of Time Warner is allowed to proceed.

For months, it's seemed like the deal between Fox and Disney was a done deal.

It comes as the US Cable operator and owner of the NBC broadcast network prepares to intensify its bid for 21st Century Fox with an all cash deal. Indeed, now Comcast is offering 22 billion pounds (about $30 billion) to acquire 61 percent ownership of Sky.

The bid by the Philadelphia company would be $8 billion more than Disney's offer of $52 billion. Comcast's stock fell 5.5 percent Tuesday to $30.59 in response to the news. He added that if Comcast acquires Fox, it might lead to Comcast spinning off its cable/internet and entertainment businesses into separate companies.

Shares of Twenty-First Century Fox Inc rose as much as 3.4 percent on Tuesday after Reuters reported that cable operator Comcast Corp was preparing an all-cash bid to rival a deal agreed late past year with Walt Disney Co. In the regulatory filing, Disney and Fox cited regulatory hurdles as reasons to reject Comcast's bid, even though they did not reference it by name. After Disney seemingly had firm control of the situation after announcing the deal last December, the road to acquisition has not been as smooth as the House of Mouse would probably have preferred, as Comcast has now thrown its hat back into the ring. "If they acquire both and remain integrated, it would change our thesis (Cable would be less than 50% of the value); however, it would be hard not to be excited about a phenomenal Cable asset coupled with a global content powerhouse, trading at 9x FCF". This article is strictly for informational purposes only.

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