Disney is very, very close to securing its purchase of 21st Century Fox.
Comcast and Disney have gone back and forth over purchasing Rupert Murdoch's empire since November, but Disney always appeared to have the lead. Now, Comcast is officially dropping its $65 billion bid, practically ensuring victory for Disney, The Associated Press reports.
Rumors of Disney purchasing Fox first sprouted in November, and Comcast joined the fray soon after. In December, Disney placed a $52.4 billion bid for Fox's TV and film studios, as well as its cable TV channels. Comcast countered with $65 billion in cash in June, but Disney posted a $71.3 billion offer in cash and stock later that month. Fox touted Disney's higher chance for U.S. regulatory approval at the time.
That big Disney deal appears to be the winner after Comcast dropped out of the running Thursday, CNN says. It helps that a Disney-Fox merger got U.S. Justice Department approval after the $71.3 billion offer, provided Disney doesn't keep Fox's sports networks. (Disney already owns the ESPN networks.)
A successful Comcast bid would have made it one of the most indebted companies in the world, per CNN. But that doesn't seem to bother the media giant, as it's still bidding against Fox for U.K.-based Sky News. Comcast seems more likely to win that battle, as British regulators hinted in February that a deal with Fox wouldn't get government approval.
Fox's shareholders officially vote to accept the Disney deal on July 27, which includes the 20th Century Fox film studio and cable channels such as FX, per AP. Fox News, Fox Sports, and local TV stations will be spun off into a new company. Kathryn Krawczyk