Comcast is seeking up to a $60 billion increase in bridge financing from investment banks to disrupt the 21st Century Fox-Disney merger, three sources told Reuters. Comcast Chief Executive Brian Roberts plans to proceed with an all-cash offer to Fox only if a federal judge allows AT&T’s planned $85 billion acquisition of Time Warner to proceed. That decision is expected in June from U.S. Disctric Court Judge Richard Leon. The U.S. Department of Justice has opposed the acquisition over antitrust concerns.
Disney Chief Executive Bob Iger secured an all-stock deal with Fox Executive Chairman Rupert Murdoch in December. That deal came after Fox rejected a bid from Comcast in November to buy its networks, movie studios, TV production and foreign assets. Instead, Disney is now planning to acquire Fox’s film, television and international businesses. This would give Disney, the world’s largest entertainment company, a set of shows and movies to combat streaming rivals Netflix and Amazon.
The exact value of Comcast’s new bid for the Fox assets is not yet clear, but the $60 billion in new financing shows that it is trying to outbid Disney’s $52 billion offer. It is also unclear how receptive Murdoch would be to an all-cash deal.
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