21st Century Fox and The Walt Disney Company Strike Merger Agreement
Big news was announced today regarding the purchase of 21st Century Fox, specifically in terms of an increased bid from The Walt Disney Company.
Disney’s previous bid was to use $52.4 billion in stock to buy Fox. Last week, Comcast offered $65 billion, in cash, to purchase Fox. It was then that Iger increased the bid to a whopping 71.3 billion in cash and stock.
On Iger’s bid and what it means for the company, media analyst Tuna M. Amobi had this to say.
‘This deal is supposed to be Iger’s swan song. It’s incredibly important for him. This goes to the core of how he wants to leave his mark on the company.’
The LA Times reports that Iger has changed his retirement date to the end of 2021 so he can see the merger out. While Comcast could try once more to outbid Disney, sources say it’s not likely.
The annoucnement from The Walt Disney Company states that Disney believes the path to approval is timely as both companies have spent months working towards meeting ‘conditions necessary for final approval’.
Disney believes the transaction has a clear and timely path to regulatory approval. Both companies have spent the past six months working toward meeting all conditions necessary for closing. In the amended agreement, Disney has increased the scope of its commitment to take actions required to secure regulatory approval.