Brace yourselves. A bidding war is here. Disney has increased its offer to purchase 21st Century Fox, once again taking the reigns from Comcast and becoming the highest bidder.
According to a new report from Deadline, Disney has increased its bid to $71.3 billion, significantly higher than the $65 billion offer from Comcast last week. Disney’s new offer comes down to $38 per share in cash and stock, in addition to the company taking on Fox’s net debt, which increases the total transaction to $85.1 billion.
This bidding war comes after Disney and Fox initially agreed on a purchase earlier this year, with the hefty price tag sitting at $52.4 billion. Comcast swooped in late in the game with a bigger deal, but the original terms of the purchase gave Disney a chance to come combat that counter offer.
While the back-and-forth may not have been what Disney expected, the company certainly sounds confident that it will weather the storm. Robert A. Iger, Chairman and Chief Executive Officer of The Walt Disney company had this to say:
“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’s new offer came in right at the perfect time as the Fox board had already scheduled a meeting for later today, to discuss the legitimacy of Comcast’s offer. Now, it seems as though that option is null and void.
It’s unclear at this point whether or not Comcast will increase its bid again, or yield to the high offer from Disney. There’s also a potential option in which the companies could split the Fox assets.