Categories Analysis, Technology

Comcast lets go of Fox; wants to pursue Sky

Comcast Corporation (CMCSA) decided to abandon its pursuit of 21st Century Fox (FOX), finally putting to rest all the speculations about this episode on Wall Street. Comcast was locked in a battle with Walt Disney Co. (DIS) for the film and TV assets of Fox, which saw both companies outbidding each other and Disney raising its offer up to $71 billion.

With Comcast bowing out, Disney’s latest sweetened offer has prevailed, marking the end of a very interesting duel. There is another bidding war going on between Comcast and Fox for the assets of European pay-TV company Sky plc. Fox already owns 39% of Sky and wants to take over the remaining 61%. Fox received approval from the British authorities only recently for its purchase of Sky.

According to a report by CNBC, the Justice Department’s recent decision to appeal against the AT&T-Time Warner deal as well as Fox’s inclination towards Disney were said to have played a part in Comcast dropping its pursuit for Fox. In addition to this, Comcast was wary about the pricing and how many assets it would have to offload in order to get approval for the deal.

With Fox shareholders getting ready to vote on the Disney deal by the end of this month, Comcast was also facing a time crunch with regards to raising its offer for Fox. Comcast was also doubtful over how its bidding for Fox would affect its bidding for Sky. With all these concerns looming, Comcast decided it was better to focus on acquiring Sky. Last week, Fox offered to pay $32.5 billion for Sky and Comcast immediately raised its bid to $34 billion.

Disney, meanwhile, is pleased with this new development. Since the company has already received approval from the DOJ for its acquisition of Fox, it does not seem to have any other hurdles in its path to keep it from closing the deal as soon as possible.

Most Popular

Aurora Cannabis (ACB) Earnings: 3Q21 Key Numbers

Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as

Walt Disney (DIS) Q2 revenue down 13%; earnings beat estimates

Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and

Three key factors that bode well for Tattooed Chef (TTCF) going forward

Shares of Tattooed Chef Inc. (NASDAQ: TTCF) have gained 57% over the past 12 months but has dropped 25% since the start of this year. The sentiment on the stock

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top