Banked

20 June 2018 By Jennifer Saba Follow @jennifersaba

Boss Bob Iger leapfrogged Comcast by raising his offer for parts of Fox to $71 bln, including a generous dollop of cash. He retains Rupert Murdoch’s support, and has room to go higher still. The cable firm may yet go hostile, but would be better off focusing its efforts on Sky.

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Walt Disney on June 20 announced it had increased its agreed offer to buy much of Twenty-First Century Fox's entertainment and international assets to $38 a share in cash and stock, or an implied equity value of $71.3 billion. Disney will also assume $13.8 billion of Fox’s net debt, making the enterprise value of the deal $85.1 billion.

Fox said the new offer was "superior" to a rival bid of $35 a share in cash from Comcast.

The overall consideration paid to Fox shareholders will be approximately 50 percent cash and 50 percent Disney stock. The stock consideration is subject to a collar and is expected to be tax free to Fox shareholders.

Disney is expected to pay a total of $35.7 billion in cash and issue approximately 343 million new shares to Fox shareholders, representing about a 19 percent stake in Disney on a pro-forma basis.

Disney initially offered to buy Fox for $52.4 billion in shares on Dec. 14. Comcast on June 13 offered to buy Fox’s entertainment and international assets for $65 billion in cash.

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