Disney CEO Bob Iger Excited To Move Forward With Fox Acquisition

As such, Murdoch's company would still retain its "news" divisions, Fox Sports Network, and FOX Broadcasting (Disney legally can not own the network since it already owns ABC).

The Fox sale does not include major assets such as the Fox News Channel, Fox Business Network, and Fox Broadcasting Company.

In a regulatory filing last week, Fox and Disney acknowledged for the first time they may not try to again outbid Comcast on Sky, though the sources stressed no decision has been taken.

Comcast chairman and CEO Brian Roberts congratulated Disney saying, "I'd like to congratulate [chairman and CEO] Bob Iger and the team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company".

The US media company chose to end its battle with Disney today - making Rupert Murdoch's desires to buy out the rest of Sky a more challenging task. Last week, Comcast made a bid that values Sky at $US34 billion, compared with $US32.5 billion in Fox's offer. The idea of a Comcast Fox deal is officially dead.

With Comcast ostensibly out of the picture, Disney is poised to gain control of Fox's film and TV studios, along with a suite of cable networks (FX, for instance) and a 30 percent share of online streaming service, Hulu.


The victory arrived at a steeper cost: Disney raised its bid from an initial $52 billion in an all-stock deal to $71 billion, which includes cash. That's a 5% premium over Fox's most recent £14.00/share offer to purchase the 61% of shares in Sky that it doesn't already own.

Comcast announced that it would drop out of the bidding war for assets now owned by 21st Century Fox, paving the way for Disney to complete the Hollywood-shaking merger.

The Justice Department has said it will appeal a federal judge's decision approving the AT&T/Time Warner deal, which could make future so-called vertical mergers hard to pass regulatory muster.

Are you excited for Disney to finally acquire Fox?

For one of Fox's assets though, the battle has only just begun. Increasing the offer by £1 would add $1.5 billion of extra debt, and $60 million in annual interest costs, Disney has said. That also holds the prospect of boosting the cost of the overall Fox deal to Disney, as it intends to buy up all of Sky if the Murdochs prevail.


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