Disney ups offer for Fox

Disney CEO Bob Iger (left) and Fox boss Rupert Murdoch

The Walt Disney Company is increasing its bid for 21st Century Fox assets to north of US$71bn as it seeks to triumph over rival bidder Comcast.

The Mouse House initially offered US$52.4bn for the package, which includes Fox’s US cablenets and stakes in European satcaster Sky and production giant Endemol Shine Group, in December last year.

That had looked set to progress smoothly, and Fox has already revealed the executive structure for its post-merger news and sport-focused US business.

However, US media giant Comcast tabled a rival US$65m offer last week, leading to today’s improved offer from Disney.

The new offer is for US$38 per share, up from US$28 a share in the original bid and more than Comcast’s US$35 per share offer. A statement from 21st Century Fox this afternoon said the new bid “offers a package of consideration, flexibility and deal certainty enhancements that is superior to the proposal made by Comcast.”

The revised offer would see Disney acquire the assets on much the same terms as the original agreement, although 21st Century Fox shareholders will be entitled to receive their share in the form of cash or stock.

A special meeting of stakeholders to consider the original bid had been scheduled for July 10, but this has now been put back to allow more time to consider the revised proposal.

Rupert Murdoch, executive chairman of 21st Century Fox, said: “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.”