What Comcast Buying Fox Instead Of Disney Would Mean

What Comcast Buying Fox Instead Of Disney Would Mean

What Comcast Buying Fox Instead Of Disney Would Mean

Comcast is asking banks to increase the bridge financing line they have already arranged for the Sky offer by as much as $60 billion to finance the Fox bid, according to a person with knowledge of the matter, who asked not to be identified because the discussions are private.

He also pointed to the huge increase in Comcast's debt the acquisition of both Fox and British pay-TV group Sky for nearly $100 billion in total would generate.

Comcast has already made a formal unsolicited $31 billion offer in Europe for Sky satellite-TV business, which is partly controlled by Murdoch. The outcome of the case, which is expected to be announced in June, will determine whether or not Comcast makes the bid.

The firm reported its earnings amid questions about its plans to buy the bulk of 21st Century Fox's business. The initial decision on their offer by the United Kingdom government will come two-days after the final decision for Fox's offer.

As a result, the global telecommunications conglomerate believes it stands a better chance with an all-cash proposal, even if Fox Executive Chairman Rupert Murdoch prefers Disney shares.

If the judge agrees to allow AT&T to acquire Time Warner, some thing Comcast could make a hostile bid for Fox assets because it would be more likely that a Comcast/Fox deal would be approved by regulators.

The Commission can clear the £22 billion (US$30 billion) bid with or without conditions or it can open a four-month investigation if it has serious concerns about the deal.

Comcast and Fox declined to comment.

It is possible Comcast could bid a bit lower than last time if it pursues a hostile effort, one of the people familiar with the situation said.

Disney has committed to share buybacks as a way of returning cash to Fox shareholders. In doing so, it topped an earlier offer for the entirety of Sky by Fox.

It is keen to show Sky's investors that it can get through the regulatory process quickly, unlike Fox, which has faced repeated delays since it first agreed a takeover of Sky in December 2016.

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