The bidding war is definitely on. In response to Comcast’s competing bid for Fox, the folks at Disney are definitely not backing down. Yesterday Disney raised its bid to $38/share, working out to a total of $71.3B in cash and stock as well as the assumption of $13.8B in net debt.
The new bid surpasses Comcast’s $35/share bid announced last week, and Fox quickly labeled it as superior. Disney’s earlier bid of $28/share now looks downright stingy by comparison, working out to around $19B less so far. Interestingly, the stocks of all three companies were up yesterday in the wake of the war – you’d think at least one of them would go the other way.
Comcast’s bid came just days after AT&T won its case in court to buy Time Warner. It’s part of the trend by major network operators to diversify into the content business. Personally, I’m not convinced that this is the right path for either network or content, but it’s definitely a bold one.
Regardless, Disney’s response suggest that Comcast’s path forward here won’t be easy. How much do they want it?
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