Comcast has finally made their big push for winning over 21st Century Fox from Disney, and that could put the upcoming Disney merger meeting on ice.
Earlier today Comcast made an incredibly formidable bid take the 20th Century Fox company and other assets away from a planned Disney deal to the tune of $65 million and in all cash. 21st Century Fox released a statement after the bid that suggests the Disney Merger meeting, which was scheduled for next month, could very well be postponed, though no decisions have been made yet (via Deadline).
“21st Century Fox has not yet made a determination, in light of Comcast’s proposal, as to whether it will postpone or adjourn the July 10,
The Disney deal was proposed several months ago, but the Disney merger meeting was the time for it to be submitted for approval to stockholders. Disney's proposal committed $52 million in stock for 20th Century Fox, Sky, and other assets, and Fox did say that “21st Century Fox remains subject to the Disney Merger Agreement."
21st Century Fox also added that it will give the new bid from Comcast a fair shake in their official statement. “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."
This new move from Comcast all kicked off thanks to a federal judge ruling in favor of the AT&T Time Warner merger that launched in 2016. While the Department of Justice could still appeal, Comcast seems to believe the gateway is open and decided to go in with a heavy hand in regards to 21st Century Fox.
Ironically a few days ago Disney sent out a proposal letter about the 21st Century Fox merger, but that looks to be in jeopardy. Disney has deep pockets, so if they wanted to they can increase the offer to meet Comcast's, but there is the matter of all-cash versus stock, something that 21st Century Fox will have to weigh.
You would expect a competing bid from Disney in the coming days, though there's no guarantee they will match Comcast's bid. Disney stock will likely continue to rise over the next few years, so Fox could look at that more favorably than an all-cash offer.
Guess we'll just have to wait and see.