Disney has tabled an improved $70.4bn (€61bn) takeover offer for a significant share of rival US media company 21st Century Fox’s business assets.
The amended transaction agreement marks a considerable increase on the $52.4bn deal sealed with Fox in December and comes after Comcast last week submitted a counter-bid of $65bn. The deal with Disney would include approximately $35.7bn in cash.
Fox and Disney have already submitted filings with the US Securities and Exchange Commission, with the former having scheduled a vote on the merger proposal for July 10. The deal agreed by Disney was set to lead ultimately to the company securing control of Sky, a major sports broadcaster in Europe, and media company Star India, as well as 22 regional sports networks, among other assets.
Mike Vorhaus, president of research and consulting group Magid Associates, told USA Today: “I would expect Comcast has another bid in them.”
Confirming that it had signed an amended acquisition agreement, Disney said: “The businesses to be acquired by Disney remain the same as under the original agreement. Since the original agreement was announced, the intrinsic value of these assets has increased, notably due to tax reform and operating improvements.
“The acquisition will significantly increase Disney’s international footprint and expand the content and distribution for its direct-to-consumer offerings, which include ESPN+ for sports fans.”
Disney chairman and chief executive Bob Iger added: “The acquisition of 21st Century Fox will bring significant financial value to the shareholders of both companies, and after six months of integration planning we’re even more enthusiastic and confident in the strategic fit of the assets and the talent at Fox.
“At a time of dynamic change in the entertainment industry, the combination of Disney’s and Fox’s unparalleled collection of businesses and franchises will allow us to create more appealing high-quality content, expand our direct-to-consumer offerings and international presence, and deliver more personalised and compelling entertainment experiences to meet growing consumer demand around the world.”