The Media War Between Comcast and Disney
In the Reuters article, Comcast Tops Disney With $65 Million Bid For Fox Assets, stated that Comcast out bided Disney $35 a share to $29.18 a share. Disney didn't respond immediately to a counteroffer, but a source close to Disney says "Disney is lining up financing in the event it chooses to counter Comcast’s offer with new terms that include cash..." This transaction is likely to go through after AT&T Inc was allowed to buy Tim Warner Inc for $85 million.
The fight for Fox is part of a scramble by media, telecom and cable companies to get bigger as the superpowers of the technology industry, from Netflix Inc. to Facebook Inc., have disrupted old ways of doing business.
This acquisition is truly critical because Mr. Roberts, Chief Executive of Comcast, says "We firmly believe that the truly great media companies of the next century will be integrated global entities."
Comcast is dealing with a declining pay-TV market at home. It could find new growth with Fox’s international assets, including European and Indian streaming services.
For Disney, winning Fox would be a hedge against Silicon Valley companies like Netflix that have taken on Hollywood by marrying technology with piles of cash to spend on production. Immediately, it would give Disney majority ownership in Netflix competitor Hulu and access to a new, deep library of Fox’s movies and shows, including franchises like “Avatar” and “The Simpsons,” to make available on its planned streaming service.
Who do you think will win the bidding war? Who has the edge?
Amet dolores non aut itaque veniam in. Est totam eum est nesciunt. Commodi sint enim sed sed ratione accusantium. Voluptatem omnis dolorem aperiam quasi enim. Aspernatur laboriosam ea et explicabo.
Quaerat sapiente dolores neque voluptates ducimus voluptatem. Laboriosam est non vero facere. Quam accusantium eum et velit aspernatur autem molestias neque. Adipisci doloremque deserunt quae neque earum voluptatem et.
Maiores recusandae ut reprehenderit qui. Deserunt neque pariatur rerum molestiae ipsa illo. At rerum earum provident et fuga tenetur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...