After months of dueling with Disney over the majority of 21st Century Fox, Comcast has pulled out of the battle, ceding the prize and ending one of the highest-stakes duels in media history.
“Comcast does not intend to pursue further the acquisition of the Twenty-First Century Fox assets and, instead, will focus on our recommended offer for Sky,” the company said in a statement.
CEO Brian Roberts, who had sought to outdo Disney given Comcasts history with the company, which dates to an unsolicited takeover bid rebuffed by Disney in 2004, delivered a sporting statement. “Id like to congratulate Bob Iger and the team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company,” he said.
The concession gives Disney, subject to shareholder and regulatory approval, control of Foxs film and TV studio, a suite of cable networks including FX and National Geographic and an additional 30% of Hulu. Disney is paying $71.3 billion in cash and stock, a significant uptick from the $52.4 billion that the Murdoch family had accepted last December.
Comcast, seeing the landscape consolidate around it, moved aggressively to bid up the Fox assets, raising its offer in the immediate aftermath of a federal judges ruling clearing the way for AT&T and Time Warner to get together. The government last week appealed the decision, throwing things into a more confused state. The appeal, combined with a settlement between Disney and the Department of Justice that sealed DOJ approval of the merger, gave Disney an advantage that many had predicted would box out Comcast.
One question still pending is who will emerge as a buyer for the regional sports networks owned by Fox, a $20 billion-plus portfolio whose sale is required by the DOJ.
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