Media giant 21st Century Fox, which agreed to sell a series of entertainment assests to Disney in December, rejected a higher buyout offer from Comcast over fears of regulatory risks, the Wall Street Journal reported. In December of 2017, negotiations between Comcast and Fox for these same assets fell through because the former refused to offer a ‘break-up fee’ in case the deal was blocked by antitrust authorities. The new offer also did not include such a fee.
Fox and Disney entered a regulatory filing explaining the reasons behind the rejection. The filing, which outlines the timeline of their negotiations, offers the most detailed insight yet into Fox’s thinking, as it goes head-to-head against Comcast, a US cable operator, in its bid to acquire European pay-TV company Sky, in which Fox holds a 39% stake.
Comcast announced in February, April 13, that it was working on a US$31 billion bid that would top Fox’s deal for Sky. It has not made a new attempt to bid for the Fox assets after the Disney deal, so investors are keen for information on the hurdles that prevented an agreement between Fox and Comcast.
The filing does not mention Comcast by name the Journal said, but refers to it as Party B. Another bidder for the Fox assets, US wireless carrier Verizon Communications, is referred to as Party A.
Full Content: Wall Street Journal
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC to Approve Exxon’s $64 Billion Deal with Pioneer Resources, Excludes
May 1, 2024 by
CPI
UK Competition Watchdog Raises Alarm Over Nvidia’s ARM Takeover
May 1, 2024 by
CPI
Sen. Klobuchar Urges Regulators to Probe Collusion in Health Care Pricing
May 1, 2024 by
CPI
Multiple States Join Tennessee’s Antitrust Lawsuit Against NCAA Over NIL Rules
May 1, 2024 by
CPI
NY AG Joins Suit Challenging NCAA’s Restrictions on Student Athlete NIL Rights
May 1, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI