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Following a competing bid from rival Comcast, The Walt Disney Company has revised their offer to acquire a number of 21st Century Fox assets:

  • Disney’s new offer is valued at $71.3 billion.
  • This is an increase of $18.9 billion from their initial bid of $52.4 billion.
  • The bid exceeds Comcast’s $65 billion all-cash offer.
  • The company will also assume $13.8 in Fox debt, bringing the total transaction to $85.1 billion.
  • Fox shareholders can elect to receive either cash or stock.
  • The assets that Disney would be acquiring remain the same — including the 20th Century Fox film studio, cable channels like FX, Fox’s share of Hulu, and more.
  • Because of the revised offer, Disney and Fox will need to prepare new proxy materials.
  • As a result, the shareholder meetings that had been set for July 10th will be rescheduled.

What they’re saying:

  • Bob Iger, Disney Chairman and CEO: “The acquisition of 21st Century Fox will bring significant financial value to the shareholders of both companies, and after six months of integration planning we’re even more enthusiastic and confident in the strategic fit of the assets and the talent at Fox. At a time of dynamic change in the entertainment industry, the combination of Disney’s and Fox’s unparalleled collection of businesses and franchises will allow us to create more appealing high-quality content, expand our direct-to-consumer offerings and international presence, and deliver more personalized and compelling entertainment experiences to meet growing consumer demand around the world.”
  • Rupert Murdoch, Executive Chairman of 21st Century Fox: “We are extremely proud of the businesses we have built at 21st Century Fox, and firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace at a dynamic time for our industry. We remain convinced that the combination of 21CF‘s iconic assets, brands and franchises with Disney‘s will create one of the greatest, most innovative companies in the world.“

Disney’s Justification for Raising Their Bid:

  • The impact of tax reform on the Disney and Fox business.
  • “Operating improvements” at Fox.
  • Transaction will be accretive to earnings in the second year after the transaction

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