21st Century Fox is rallying as Comcast looks to swoop in on Disney's bid for its assets

 


21st Century Fox is rising nearly 2% Tuesday after Reuters reported Comcast is looking to outbid Disney to acquire most of Fox's assets. Comcast is said to be speaking to investment banks about financing an all-cash bid to overtake Disney's $52 billion deal wth 21st Century Fox. 

Comcast previously made a $30 billion offer to acquire a roughly 61% stake in Sky, a pan-European media company known for broadcasting live soccer matches and premium content like HBO. It currently awaits a June 15 verdict from the European Commission on the acquisition.  

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Walt Disney over the years
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Walt Disney over the years
UNSPECIFIED - NOVEMBER 27: Walt Disney's father and mother late 19th century (Photo by Apic/Getty Images)
Actor Leslie Howard and producer Walt Disney shake hands after playing in a polo match together.
(Original Caption) Walt Disney (1901-1966), famed orignator of full-length animated motion pictures, at work at his drawing board.
(Original Caption) Portrait of Walter Elias Disney (1901-1966), originator of the vast Disney empire consisting of theme parks, cartoons, and movies. Disney is waving and smiling for the camera in this 3/4 length photograph.
Walt Disney with kittens.
(Original Caption) 2/1942: Secretary of Treasury Henry Morgenthau, Jr., Walt Disney, Assistant Secretary of Treasury, John L. Sullivan, Assistant to the Secretary George Buffington, Disney Artist Joseph Grant, and Disney writer Richard Huemer look over Disney's sketches for 'The New Spirit,' Disney cartoon for the Treasury Department.
(Original Caption) Walt Disney takes an imaginary spin high on an old Eagle racing bike while his daughter, Diane, paces him on an 1870 model tricycle. The bikes are part of a collection in Ford's Edison Museum. Undated photograph.
(Original Caption) Walter E. Disney, famous producer of animated cartoons, is shown with doll replicas of his most famous characters which were responsible for his being conferred an honorary degree of Bachelor of Arts at Harvard University Commencement. President James Bryant Conant made the presentation before 5,800 special guests, alumni, students, faculty and members of the graduating class.
(Original Caption) Walt Disney, creator of Mickey Mouse, with Louis Lumiere, French Grand old man of films, during the former's visit to Paris.
American film producer and creator of Disney World, Walt Disney, holds sheet music with actor Eddy Nelson.
(Original Caption) 1939-Los Angeles, CA- Shirley Temple presents an Academy Award to Walt Disney for his outstanding cartoon, 'Snow White and the Seven Dwarfs,' one big statue and seven little ones, at the 11th Annual Academy of Motion picture Arts & Sciences dinner.
(Original Caption) Arriving on the Rex is Walt Disney, creator of Mickey Mouse. Mickey Mouse is the animated cartoon character who cavorts his way over the silver sheet much to the delight of America's younger generation.
(Original Caption) Walt Disney learns to do El Gato, one of the colorful and traditional dances of the Argentine countryside. During the survey trip which Disney and a group of his artists made to South America, they spent many hours studying and recording through sketches and photography, the ins and outs of numerous dances and costumes.
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21st Century Fox owns the remaining 39% of Sky, and has been unable to take over the media company entirely due to regulatory hurdles. Comcast is hoping investment banks will help raise as much as $60 billion for the company to make a deal to acquire 21st Century Fox assets on top of the Sky bid. 

Comcast, which previously made an offer to 21st Century Fox that fell through due to antitrust concerns, said it will only make a formal bid for 21st Century Fox if the AT&T and Time Warner deal goes through. AT&T and Time Warner await a ruling next month on the US Department of Justice's challenge to AT&T's planned acquisition of the media conglomerate. The Department of Justice challenged the merger on antitrust concerns, believing the combined company could reduce competition and hurt consumers.

If the AT&T-Time Warner merger is approved, Comcast will likely feel emboldened to make its bid for 21st Century Fox, seeing the chances of merger approval will tilt more in its favor. 

21st Century Fox is up more than 8% this year. 

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