stone cold fox deal
Disney's hounding of 21st Century Fox finally paid off.
Fox accepted Disney's massive $71.3 billion offer in cash and stock to buy the company, The Wall Street Journal reports. The whopping deal, which Disney proposed Wednesday morning, is "superior" to Comcast's $65 billion all-cash offer made earlier this month, Fox said in a statement Wednesday. Disney had previously offered $52.4 billion in stock before being outflanked by Comcast.
The rejection is good news for Comcast's bank account. Buying Fox would've plunged Comcast nearly $170 billion in the hole and made it one of the most indebted companies in the world, CNN reports.
Disney's acquisition includes the 20th Century Fox film and TV studio, Fox's American cable channels, and U.K.-based Sky News, says Bloomberg. Some major Fox assets, including Fox News, Fox Sports, and its TV stations, aren't part of the purchase. They'll be spun off into a so-called "New Fox."
The Justice Department still has to okay the deal, and Fox was worried that Comcast's offer posed bigger regulatory concerns, the Journal reports. A judge's recent approval of the AT&T-Time Warner merger bodes well for Fox and Disney's union.