Comcast prepares all cash bid for 21st Century Fox

Fox hunt heats up as Comcast prepares to duel with Disney over Rupert Murdoch's company

Fox stock jumps after report that Comcast is preparing to battle Disney for megadeal

Both companies have an eye on the proposed takeover of Time Warner by AT&T that the telco is determined to move forward, despite opposition from the Trump administration.

For its part, Disney successfully outbid Comcast in December for a collection of assets that include Twentieth Century Fox, Fox Searchlight Pictures and Fox 2000, along with the television creative units, Twentieth Century Fox Television, FX Productions and Fox 21.

Comcast didn't immediately respond to Philadelphia magazine's request for comment.

However, the plot has thickened significantly, because according to Reuters, US cable operator Comcast Corp is preparing to "gate-crash" the deal and come bowling in with its own offer. By purchasing most of their film and TV outlets - including channels like Fox Sports and FX, and franchises like the X-Men and Avatar movies - Disney would become arguably the dominant force in American and global media.

Rupert Murdoch who insiders have said is taking a sniff around the Seven Network in Australia after losing out on the Ten Network, is facing the real possibility that his 21st Century Fox network could pocket billions, after U.S. operator Comcast moved to nobble a recent Disney offer by putting in a bigger offer.

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Comcast stepped up its push to buy UK-based Sky on Tuesday, keen to prove that it will face fewer regulatory hurdles in its $31 billion pursuit of Sky compared to Fox. Now, as again per Reuters, Comcast CEO Brian Roberts is meeting with investment banks in order to "increase the bridge facility" they have already established for acquiring majority ownership of Sky.

But regulatory fears could wane if a federal judge allows AT&T Inc.to acquire HBO-owner Time Warner Inc. That bid would be a total and complete acquisition, and thus on top of its heftier $85 billion comes with real concern about monopolies, oligarchies, and antitrust laws.

USA stock benchmarks finished higher on Monday, but well off the peak of the day, as energy shares pulled back following a late-afternoon tweet from President Donald Trump indicated that a decision was imminent on whether the US would decertify a 2015 Iran nuclear pact.

The judge is expected to make a decision by mid-June.

Analyst Richard Greenfield with BTIG Research said Comcast can make the math work on an all-cash deal and that the synergies are greater for Comcast/Fox/Sky than Disney/Fox/Sky due to distribution overlaps.

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