It looks like The Walt Disney Company is one step closer to acquiring Fox.
Earlier this morning, The Walt Disney Company made an updated offer of $71.3 billion to purchase 21st Century Fox. This new offer tops the recent $65 billion bid from Comcast. Bloomberg is reporting that Fox has accepted Disney’s proposal, placing its offer in the pole position in the bidding war.
We should note that the term “accepted” doesn’t mean that Disney just bought Fox for $71.3 billion. All this means is that the company officially recognizes Disney’s proposal as the single best offer on the table. Comcast can still return with an even higher bid.
Disney’s increased offer comes as an equal mix of cash and stock: $35.7 billion in cash and 343 million shares in Disney. The bid is 35 percent higher than their earlier offer, and about $6 billion more than Comcast’s.
“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,” said Robert A. Iger, Disney’s Chairman, and Chief Executive Officer. “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.”
Now we wait to see how Comcast responds.