Comcast withdraws 21st Century bid, Comcast (NASDAQ:CMCSA) revealed earlier today, adding that it will instead focus on acquiring Britain’s Sky (OTCQX:BSYBF).
Comcast previously bid $65 billion for the 21st Century Fox (NASDAQ:FOX) movie studio, along with other Fox assets such as Fox’s regional sports networks and cable channels like FX and National Geographic. The company has now withdrawn its bid, with the path now clear for Walt Disney (NYSE:DIS) to acquire the Fox assets with its improved bid of $71.3 billion.
The shares of Comcast rose by 2.2% in premarket trading, while that of Fox went the other way, dropping by 1%.
Even though Comcast has thrown in the towel for Fox, its battle with Disney isn’t over as it now aims to focus its attention on acquiring British broadcaster Sky, which Disney is also trying to buy. At the moment, Comcast has made an offer worth $34 billion for the company.
Comcast’s Official Statement
Comcast Corporation today issued the following statement regarding its pursuit of the assets 21st Century Fox has now agreed to sell to The Walt Disney Company:
“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 Chairman and CEO of the company, Brian L. Roberts, meanwhile congratulated Disney in the statement. He stated that “I’d 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.”
This is huge news for Disney, which won the US Justice Department’s approval for its merger just last month. Previously, Disney had agreed to spin off Fox’s sports networks to ensure that the US government is also satisfied with the deal.
Will Comcast Buy Sky?
Comcast withdraws 21st Century bid and with that, moves onto bluer skies—at least, that’s the plan. Comcast didn’t succeed in acquiring Fox, but do you think it will be more successful in acquiring Sky?
Let us know in the comments below.
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