In the battle to shape the future of the media business, Comcast is reportedly looking at rounding up well-funded partners as it continues to try to pry 21st Century Fox’s entertainment assets from the grips of corporate rival Disney.
“Comcast Corp. is exploring tie-ups with other companies or private-equity investors that could provide additional cash,” The Wall Street Journal reports, citing sources who are familiar with the situation.
The report notes that Disney and Fox reached a $52.4 billion all-stock deal back in December, which was topped by Comcast on June 13, when the company came up with a $65 billion all-cash offer. Disney regained control of the bidding last week when Disney and Fox agreed to a revised merger pact with a $71.3 billion price tag and a target of 50% stock consideration.
Comcast reportedly isn’t quite ready to tap outside funding sources, but may do so should the bidding climb to around the $90 billion range, the WSJ’s sources said.
“A strategic investor could team up with Comcast, taking on the U.S. Fox assets that are in play — including the Twentieth Century Fox studio and regional sports networks — while leaving Comcast with international businesses such as European pay TV giant Sky PLC and Star India,” The Journal reports, adding: “It’s unclear who potential strategic partners might be. Tech companies or traditional media outfits could each be candidates, one of the people familiar with the situation said.”
Previous talks between Comcast and Amazon.com Inc. ended without a partnership, the report notes.
“Comcast is reviewing all options, including coming back with a substantially higher offer or whether to continue the hunt at all, the people familiar with situation say,” the WSJ report adds.
The Wall Street Journal Story may be behind a paywall, and readers can access the MarketWatch story on the topic by clicking here.