×
You will be redirected back to your article in seconds

Media Stocks Stabilize After Comcast’s Move to Outbid Disney for 21st Century Fox

UPDATED: Comcast’s announcement of a $65 billion bid for 21st Century Fox entertainment assets — 19% higher than Disney’s prior offer — stirred up the companies’ stocks anew in after-hours trading Wednesday before they settled down.

Initially, Fox shares rose as much as 1.6% after the market closed, after already closing up 7.7% in regular trading Wednesday as investors anticipated a Comcast-Disney bidding war. Comcast stock dropped as much as 1.6% immediately after the announcement was released just after 4 p.m. ET, and Disney was down as much as 0.4%.

By 4:45 p.m. ET, Comcast was flat in after-hours trading, 21st Century Fox shares were up 0.2% and Disney had nosed up 0.08%. An hour later, as of 5:45 p.m. ET — after 21CF confirmed receipt of the offer and said it was evaluating the bid — Comcast was up 0.6%, Fox was roughly flat (down 0.05%) and Disney was down 0.3%.

The Comcast all-cash bid for 20th Century Fox and other Fox businesses wasn’t a surprise: Comcast last month announced it was ready to outbid Disney’s stock deal with a “superior offer.” It’s the first big M&A domino to fall after a judge’s ruling Tuesday allowed AT&T’s takeover of Time Warner to proceed without any conditions attached.

Other media stocks were largely unaffected by the news of Comcast’s fully expected Fox bid.

Time Warner, which closed up 1.8% to $97.95 per share Wednesday, was up 0.1% in the after-hours session. CBS, Viacom and Lionsgate were flat; at the close of regular trading, CBS was up 3.6% and Lionsgate was up 3% while Viacom dropped 0.5%. Discovery’s stock was up 1.7% in the after-hours session (after closing up 1.6% for the day) and AMC Networks climbed 0.13% (after a 3% gain during regular trading).

Comcast is proposing to acquire the same pieces of 21CF that Disney had negotiated a deal for: 20th Century Fox, the FX cable network, 22 regional sports networks, Fox’s 30% stake in Hulu, and a stake in U.K. satellite broadcaster Sky. Separately, Comcast is also bidding to buy Sky, and the media conglomerate said it intends “to pursue this offer in parallel with our acquisition of 21CF.”

Last fall, Comcast had engaged in extensive negotiations with Fox before Fox’s board accepted the Disney deal.

Under Comcast’s new proposal, 21CF shareholders would receive $35 per share in cash and 100% of the shares of “New Fox,” which would comprise Fox Broadcasting and its TV station group, plus Fox News Channel, Fox Business Network and the Fox Sports group. That offer provides “superior and more certain value as compared to Disney’s all-stock offer,” Comcast CEO Brian Roberts wrote in a letter to Fox’s board.

Popular on Variety

More Biz

  • CBS Studios Exterior

    CBS Credit Union Manager Sentenced to 14 Years for $40 Million Fraud

    Edwin Rostohar, the longtime manager of the CBS Employees Federal Credit Union, was sentenced on Monday to 14 years in prison for embezzling $40 million. The massive fraud left the credit union insolvent. It was shuttered and taken over by the University Credit Union, which assumed the accounts of 2,800 members. Rostohar pleaded guilty in [...]

  • United Talent Agency Reveals New Logo

    UTA Unveils New Logo, Corporate Image

    UTA raised the curtain Monday on a new corporate logo. The three-dimensional image is meant to emphasize the talent agency’s focus on uniting ideas, opportunities and talent. Building signage with the new logo will go up next month at UTA’s headquarters in Beverly Hills. “Our new identity captures the multiple facets and intersections of our [...]

  • Tribune Tower

    FCC Approves Nexstar Acquisition of Tribune Media

    The FCC has voted to approve Nexstar’s $4.1 billion takeover of Tribune Media, paving the way for Nexstar to become the nation’s largest owner of television stations with more than 200 outlets serving a wide swath of the country. FCC commissioners voted 3-2 to approve the merger agreement that was reached in December. Nexstar’s pact [...]

  • Endeavor co-founder Ari Emanuel

    Endeavor Aims to Raise $620 Million With IPO

    Endeavor disclosed Monday that it expects a price between $30 and $32 per share for its initial public offering in the fall. Endeavor — the parent company of WME, UFC, IMG, Endeavor Content, Professional Bull Riders and other assets — aims to raise as much as $620 million with the sale of 19.4 million shares. [...]

  • Overall View of the Rose Bowl

    One Dead, One Injured in Rose Bowl Parking Lot Shooting

    One person was killed and another was injured Saturday night following a shooting in a Rose Bowl parking lot, the Pasadena police confirmed. According to a statement from the police department, police responded to reports of a physical altercation and shots fired at 11:22 p.m. near the area of Arroyo Boulevard and Seco Street, where [...]

More From Our Brands

Access exclusive content