In December, Walt Disney and 21st Century Fox agreed to a $52.4 billion deal in which Disney would acquire about half of Fox's TV-media assets, including its TV/film production company, FX Networks, National Geographic, regional sports channels, 30% interest in Hulu, and worldwide TV networks and interests.
In December, Comcast's mostly stock bid of $60 billion for a large portion of 21st Century Fox assets was rejected by Fox management, headed by Rupert Murdoch, in favor of a $52 billion all-stock offer from The Walt Disney Company.
Comcast is reportedly preparing a significant, all-cash offer for the Fox assets, according to Variety, and is expected to make the offer in advance of the summer vote for Fox shareholders that will decide which deal to take.
Disney in December offered stock then worth $52.4 billion to buy Fox's film, television and global businesses to beef up its offering against streaming rivals Netflix Inc (NFLX.O) and Amazon.com Inc (AMZN.O). After Fox made a takeover offer for the 61 percent stake in Sky that it doesn't already own, Comcast launched a 22 billion pound ($30 billion) counterbid for the business.
The offer would be in all cash but does not include the Fox News Channel, Fox Business Network, Fox Broadcasting Company and certain other assets. However, at the company's recent results Lachlan Murdoch, Fox's executive chairman, was asked about reports of Comcast considering gatecrashing the Disney deal.
Comcast says the proposed offer is in "advanced stages".
Nonetheless, the challenge for Fox is that while either suitor, Disney or Comcast, is offering a premium price, the risk is of the regulator not approving the deal.More news: Iran's Supreme Leader Sets Conditions for European Powers To Save Nuclear Deal
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Disney shares have fallen almost 3.3 percent since, reducing the value of the offer to just over $50 billion.
Audrey Chong, chief investment officer, Magna Malaysia said in the race for content acquisition, Fox will be a strong add-on to the breadth of content offered by both parties.
The deal would also make Disney one of the biggest players in sports television.
Comcast has its hands in a lot of pots: the company is also seeking to acquire the European pay-TV behemoth Sky, with a $31 billion offer.
However, in its statement, Comcast promised to pay a significant break fee should regulators scupper a deal.
"If Comcast formalizes a superior all-cash offer, we would support that offer over the current Disney offer", TCI founder Christopher Hohn said in the letter. At that point, it will come down to which company has the deeper pockets and which one is willing to go the distance. The Justice Department sued to block the $85 billion merger of AT&T and Time Warnera year after the two companies agreed on the deal.