Comcast Stock Surges As DIS Moves Closer to Acquiring Fox Assets
Shares of Comcast CMCSA climbed on Tuesday morning after the company announced that it officially bowed out of the fight to buy some of 21st Century Fox’s FOXA assets. This move leaves the Walt Disney Company DIS as the lone remaining bidder, in a deal that could now close as soon as this week.
The cable and media powerhouse decided, in the end, not to pursue a deal to acquire some of 21st Century Fox’s most notable assets, including the Twentieth Century Fox television and movie studios. Comcast’s decision to walk away from the deal comes after a few weeks of speculation surrounding a possible deal (also read: Will There Be a Bidding War for 21st Century Fox's Major Assets?).
“When a set of assets like 21st Century Fox’s becomes available, it’s our responsibility to evaluate if there’s a strategic fit that could benefit our company and our shareholders,” Comcast said in a statement. “That’s what we tried to do and we are no longer engaged in the review of those assets. We never got the level of engagement needed to make a definitive offer.”
Shares of Comcast rose over 2.61% following the announcement that it would no longer pursue a 21st Century Fox deal.
Comcast’s move presents Disney with the option to go ahead and complete a deal with Rupert Murdoch’s media empire. Disney could announce a 21st Century Fox deal as early as this week,
according to multiple reports from people close to the negations.
Disney, which has hit a rough patch this year, especially as its sports media network struggles, could benefit from a deal that would make the entertainment giant an even bigger player in television and movies.
The potential Disney and 21st Century Fox deal is said to center around Twentieth Century Fox television and movie studios—including FX and National Geographic Channel—as well as a stake in European TV giant Sky Plc (SKYAY). On top of those assets, Disney would also acquire Fox’s 30% stake in streaming television power Hulu. This move would up Disney’s ownership in the company to 60% and could help the entrainment power as it pursues its own stand-alone streaming services in 2018.
Left out of a potential Disney and Fox deal would be the company’s flagship Fox News and Fox Business channels, as well as the Fox broadcast network and Fox Sports 1.
Shares of FOXA climbed 1.44% in morning trading to inch close to their 52-week intraday trading high. Disney saw its stock price gain around 0.52%.
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