Comcast shares closed lower in the US Wednesday as it made a formal offer for 21st Century Fox. The bid is in direct opposition to an existing offer for the same Fox assets from Disney. 21st Century Fox said it will consider the new proposal.
This latest offer from Comcast follows an offer to buy Sky, another business that Disney has previously made an offer for.
Comcast shares ended the US Wednesday trading session 0.19% lower at $32.32, although the stock is currently in the green in pre-market activity. Fox shares, meanwhile, closed 7.70% higher at $43.66 and the stock is also trading in positive territory outside normal US trading hours.
Comcast’s 1st Century Fox bid
Comcast Wednesday made a $35 per share offer to acquire certain 21st Century Fox assets. The Comcast offer is higher than the existing Disney offer that has previously been made and values the Fox assets in question at $65 billion.
After being disappointed following talks about a potential deal in 2017, which saw Fox select Disney as its preferred purchaser, Comcast has made a new offer for the 21st Century Fox assets.
“Our new proposal offers 21CF shareholders $35.00 per share in cash and 100% of the shares of New Fox after giving effect to its proposed spinoff, providing superior and more certain value as compared to Disney’s all-stock offer,” Comcast Chairman and CEO Brian L. Roberts wrote in a letter to Fox.
“Our proposal represents a premium of approximately 19% to the value of Disney’s offer as of noon today. We are highly confident in our ability to finance the transaction, and our offer includes no financing-related conditions,” he added.
Fox to consider new bid
Fox’s response to the new offer from Comcast was brief, but showed the firm is considering its options ahead of a special shareholder meeting where it is currently scheduled to discuss the Disney offer.
“Consistent with the terms of this agreement and the fiduciary duties of the Company’s directors, 21st Century Fox’s Board, in consultation with its outside legal counsel and financial advisors, will carefully review and consider the Comcast proposal,” Fox said.