Disney just dropped the hammer on Comcast, upping their bid to a massive $71.3 billion to acquire 21st Century Fox’s entertainment assets.
“The $38-a-share price is about $10 a share higher than what Disney offered in December — and $3 above Comcast’s bid from last week,” according to Bloomberg. Comcast previously attempted to swoop in with a recent offer of $65 billion.
Following the new offer, Disney’s Chairman and Chief Executive Officer Bob Iger said in a statement:
“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.”
Disney is looking to launch its own streaming service in 2019 to compete with Netflix and Comcast’s media properties – The Simpsons, X-Men, Fantastic Four, and more – could be pivotal in bolstering their content.
Bloomberg broke down the latest offer from Disney, which now gives Fox shareholders the option to take their payment int he form of cash or stock, up to a 50-50 level. The previous agreement was an all-stock deal, whereas Comcast’s cash offer was seen as a “significant enticement.” Disney also reportedly plans to take on about $13.8 billion of Fox’s net debt. That would lift the total transaction value above about $85 billion.
Of course, nothing is set in stone and it’s entirely possible that Comcast could again try and counter-offer.