Comcast bids $65billion for most of 21st Century Fox to undercut Disney's existing deal - one day after AT&T's Time Warner mega-deal got the go ahead from federal judge

Mail Online | 6/13/2018 | Reporter;Associated Press
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Comcast made a $65billion bid Wednesday for Fox's entertainment businesses, setting up a battle with Disney to become the next mega-media company.

The bid comes just a day after a federal judge cleared AT&T's takeover of Time Warner and rejected the government's argument that it would hurt competition in cable and satellite TV and jack up costs to consumers for streaming TV and movies.

Ruling - Comcast - Approval - Bid - Fox

The ruling signaled that Comcast could win regulatory approval, too; its bid for Fox shares many similarities with the AT&T-Time Warner deal.

Comcast says its cash bid is 19 per cent higher than the value of Disney offer as of Wednesday. The Wall Street Journal and others reported earlier that Comcast had lined up $60billion in cash to challenge Disney for media mogul Rupert Murdoch's company.

Disney - Offer - December - Value - Stock

Disney's offer was for $52.5billion when it was made in December, though the final value will depend on the stock price at the closing.

'This is a golden offer that will put considerable pressure on (Disney CEO Bob) Iger and Disney to step up their game on another bid,' GBH Insights analyst Dan Ives said. 'This is even higher than the Street thought, which speaks to Comcast really wanting these key assets.'

Battle - Century - Fox - Entertainment - Companies

The battle for Twenty-First Century Fox comes as traditional entertainment companies try to amass more content to compete better with technology companies such as Amazon and Netflix for viewers' attention - and dollars.

If the Comcast bid succeeds, a major cable distributor would control even more channels on its lineup and those of its rivals.

Cable - Bills - Alternatives - Evidence - Mergers

That could lead to higher cable bills or make it more difficult for online alternatives to emerge, though there is not yet evidence of either happening following other mergers. For Disney, a successful Comcast bid could make Disney's planned streaming service less attractive, without the Fox video.

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