Disney has countered Comcast’s bid for Fox’s entertainment businesses by raising its own bid by almost $20 billion. The AP reports that Disney is now offering more than $71 billion in a counterbid to Comcast’s offer of almost $66 billion.
“The battle for Twenty-First Century Fox reflects a new imperative among entertainment and telecommunications firms,” the report notes. “They are amassing ever more programming to better compete with technology companies such as Amazon and Netflix for viewers’ attention — and dollars. The bidding war comes after AT&T bought Time Warner for $81 billion.”
Disney originally made an all-stock offer of $28 per Fox share back in December, with that offer currently valued at $52.6 billion. Following approval of the AT&T-Time Warner merger, Comcast countered last week with a $35-per-share all-cash offer, valued at $65.7 billion based on the same number of shares.
The AP notes that Disney’s new offer of $38 per share, or $71.3 billion, is half cash and half stock.
“Disney’s move had been expected since Comcast made its bid last week,” the report notes. “Disney said it’s raising its offer because Fox’s value increased due to ‘tax reform and operating improvements.’”