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Does Disney Just Deal Buy Fox? – The Motley fool



The ongoing drama about who will acquire Twenty-First Century Fox (NASDAQ: FOXA) (NASDAQ: FOX) is likely to have reached a turning point on Wednesday. First Admirer Walt Disney (NYSE: DIS) announced that the US Department of Justice (DOJ) has approved its planned merger with Fox. The only condition would be the divestment of Fox's 22 regional sports networks to close the deal.

The company has spent months seeking regulatory approval, which Disney boss Bob Iger described as an asset last week: "We've been in the regulatory process for six months now and we're confident we'll have a clear and timely path to the regulatory process Have approval. " Earlier comments by DOJ's head of cartel department, Makan Delrahim, indicated that approval was likely. "They had good advice and surgically cut out a transaction that could be feasible," he said.

With one of the biggest hurdles behind it now, was Disney going through the deal?

  Business people shaking hands in a conference room.

Source: Getty Images.

The Spectacle Continues

1
9659011] The back-and-forth between Disney and Comcast Fox's other potential acquirer has played out in boardrooms and in the press, with speculation about Comcast far (19659006) The speed of approval by the Department of Justice has surprised some observers, as such trades can typically take a year or more to get approval. The approval process for Comcast would probably be more complex and involve a higher degree of control, especially given the company's history with the DOJ.

Late last year, seven years after the completion of Comcast's purchase of NBC Universal, a senator requested a review of certain conditions imposed on the deal that are due to expire in September. These terms prohibit Comcast from withholding its content from online, cable and satellite competitors. There have been a number of complaints against Comcast submitted by smaller competitors, and recently there have also been concerns about the reversal of net neutrality and the potential impact on the competitive environment.

Will another offer be published?

There is evidence that Comcast is working to arrange additional financing – either in partnership with other companies or from private equity investors – that it needs to make a counteroffer. The company wants to raise up to $ 90 billion to support a future offer.

Disney had originally announced it would take over Fox at the end of last year with a deal worth $ 52 billion. For months, rumors had swirled that numerous companies, including Disney, Comcast, and [Veronon had expressed interest in acquiring Fox assets. After the first offer from Disney came out that Comcast had made a higher, unofficial offer, the Fox immediately rejected due to antitrust concerns.

In mid-June, Comcast made a new $ 65 billion all-cash deal for Fox the favorable court ruling that allowed AT & T to acquire Time Warner. The case was closely watched in the media industry to assess the regulatory landscape, and the result gave Comcast hope that it could achieve similar approval.

Disney responded and increased his bid to $ 71.3 billion in cash and stock, which was immediately accepted by Fox.

  Disney CEO Bob Iger and Fox chairman Rupert Murdoch. Image Source: Disney

Disney boss Bob Iger, left, and Fox chairman Rupert Murdoch. Image Source: Disney

It's not over until it's over

Comcast is to explore all its possibilities, which could include a higher bid, or go away from the bargain. With additional regulatory approvals from other countries required and Fox shareholders still having to vote on the Disney deal, Comcast is in no hurry to make a decision.

Yet, after disputing one of the more important regulatory hurdles, Disney seems to prefer Fox to have the upper hand. It's not over yet, but this latest development brings Disney much closer to the finish line.

Danny Vena owns shares of Walt Disney and has long been called in January 2019 at Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool owns shares in Verizon Communications. The Motley Fool has a disclosure policy.


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