The Walt Disney Company’s attempts to acquire 21st Century Fox’s entertainment assets has proven elusive. Back in May it was reported that the two media moguls came to an agreement. But then Comcast recently entered themselves into the mix to sway Fox away from Disney’s grasp. Today though, Disney has upped the ante. It appears as though the Disney Fox acquisition is back on – for now.
Disney released a statement confirming the news this morning. The deal with Fox will cost Disney $71.3 billion, with shareholders netting $38 per share in cash or stock. Disney is also expected to take on Fox’s current $13.8 billion in debt, which then amounts to a total cost of around $85 billion for Disney. Comcast best Disney last week with a bid of $65 billion in an all cash offer.
Disney and Fox confirmed that a newly amended acquisition agreement was signed between the two companies. Fox had intended to present the initial deal with Disney to a shareholders vote on July 10th. That meeting has now been delayed “in order to give those involved the opportunity to evaluate the terms of Disney’s revised proposal and other developments to date.” The delay in voting could potentially give Comcast a chance to hop back into the mix. However, many financial analysts feel they will be unable to rationally do so.
Bob Iger, Chairman CEO of The Walt Disney Company, released the following statement earlier this today:
“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.”
The Disney Fox acquisition will cause incalculable waves throughout the entertainment industry for decades to come. Just whether or not the deal will ever become official remains the question at hand.
Want to follow more of the story? This content has been exclusively shared to Baaz.