Fox Jumps on Report That Comcast Is Considering Counterbid to Disney

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Comcast Corp. (CMCSA) is seeking $60 billion of new financing in order to make a rival all-cash offer for the media assets that Twenty-First Century Fox Inc.

Comcast's decision to bid for some of Fox's assets with cash came several months after it had an all-stock offer rejected.

Fox shares climbed as high as $39.99 in the wake of the report.

U.S. cable operator Comcast Corp has formally notified the European Commission of its intention to bid for Britain's pay-TV group Sky, starting the clock on a review, a regulatory source told reporters on Monday.

"We still think Comcast will face a stiff fight for Fox and Sky and will likely end up with neither", Jonathan Chaplin, the managing partners New Street Research, said Tuesday".

Fox supremo Rupert Murdoch clearly thinks there is a high chance of the authorities blocking any move by Comcast for the assets Fox is looking to sell as he rebuffed an offer from Comcast past year for those assets that was more generous than the terms being offered by Disney.

No comment has been made from either of the three involving parties and the sources have been asked to remain anonymous. "The acquisitions of both Fox and Sky for almost $100bn in all-cash would dramatically change the company's leverage profile".

Comcast's all-cash offer of $60 billion doesn't necessarily mean that it has the edge over Disney's lower, stock-heavy bid.

Shares of Fox were last up 2.2 percent at $38.86.

Comcast, which is valued at $147 billion, is the world's largest broadcasting company.

If Disney can get past this Comcast roadblock and seal the deal with Fox, "it will be a major driver of future growth for the entertainment heavyweight, supporting the company's foray into online streaming business in a big way", wrote Anwar.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.

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