Comcast Corp. (NASDAQ: CMCSA) is considering revising its previous bid for Twenty-First Century Fox Inc. (NASDAQ: FOX) after being turned down for Walt Disney Co. (NYSE: DIS), despite offering a 15 percent higher bid, according to the Wall Street Journal, citing sources familiar with the situation.
Fox shares were trading 2.1 percent higher while Walt Disney shares were down 0.4 percent on Monday.
Fox had turned down Comcast’s offer after it had accepted a deal with Disney, agreeing to pay $52.4 billion in stock. Comcast offered a bid in the low-$60 billion range. Comcast’s bid was to obtain many of Fox’s assets such as its movie and TV production, a 39 percent stake in Sky Plc, Star India’s channels and a pay-TV such as FX and National Geographic.
Sources said the reason Fox turned down the bid was due to possible antitrust risks. The acquisition of Fox would add more cable TV channels to a powerhouse distributor. The move voiced concerns basing off the government’s block on AT&T Inc.’s acquisition of Time Warner Inc.
The new possible revised bid is not clear whether it would be Fox entirely or some of its assets, sources said. Previously last year, Comcast had offered a deal to Fox to acquire Sky in a $16.3 billion takeover.
European regulators opposed the deal saying that it would give Rupert Murdoch, CEO of Fox news, too much media control in the U.K.
Murdoch accepted Disney’s bid because he preferred payment in Disney’s stocks rather than Comcast’s stocks.
There is also a possibility that Comcast may not make any offers at all yet until Fox justifies the deal with Disney to its shareholders, sources said.