For over quite some time it has been difficult to tell who eventually wins in the tug-of-war between Disney and Comcast. It has been about the acquisition of the film and TV divisions of Twenty-First Century Fox and the associated bid stands at about $71.3 billion.
An outlook into the matter
The current bid is $18.9 billion higher than the original one and reports have also come up that it is at the moment altering its terms.
A person well conversant with the matter says that the latest bid places Disney back on firm footing in its efforts to purchase Fox’s film and television assets, including National Geographic Partners, FX Productions, Fox Searchlight Pictures, Twentieth Century Fox and a majority stake in Hulu.
The executive chairman of 21st Century Fox Rupert Murdoch believes that the scale is once again tipping in the favor of Disney. As a company they are quite convinced that the integration of 21CF’s iconic franchises, brands and assets with Disney’s will move along way helping create the largest and most innovative businesses around the globe.
Fox’s board in its latest statement outlined that it had been weighing a number of competing bids and thus no one should be tempted to see this as a sealed deal.
The plan by Comcast and Disney
Comcast and Disney are considering revamping their own entertainment businesses with Fox’s well-known movie franchises and TV shows, like “The Simpsons,” and the “X-Men” superheroes in order to be able to compete effectively rivals that are apparently growing quite fast.
The director of equity research at Omaha, Nebraska-based Weitz Asset Management Drew Weitz opined, “These bids are a validation of Fox assets, which can be a big help to someone looking to bring their content business to a global scale.”
Several news reporters recently approached a Comcast representative in a bid to get him to comment on the latest developments. He turned down their request but it was also around the same time that investors and analysts came out to make a joint statement outlining that anytime soon they were expecting a counterbid from NBC Universal which happens to be the largest U.S. cable company.
The chairman and chief executive officer of Gamco Investors which at this point happens to be the owner of about 10.1 million Fox shares today said that Comcast needed to move fast in coming up with a higher bid.
The move by Disney to sign an amended acquisition agreement with Foxhas been commended by market observers who believe the company is on the right track to achieving great success in the near future.