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Disney becomes sole suitor to buy Fox assets after Comcast bows out of bid

Published: 00:26 13 Dec 2017 AEDT

Fox
Fox is expected to fetch up to US$60bn from Disney for its assets

Comcast Corp. (NASDAQ:CMCSA) has bowed out of the race to buy most of Rupert Murdoch’s 21st Century Fox (NASDAQ:FOXA), leaving Walt Disney Co. (NYSE:DIS) in pole position for a takeover.

Disney is expected to announce it will acquire Fox’s assets as soon as this week, following reports that the two companies have been in advanced discussions. An offer of up to US$60bn is reportedly on the table.

READ: Walt Disney said to be nearing deal to buy 21st Century Fox assets

The assets include Fox’s cable channels, film studio, a stake in the Hulu streaming service and its holding in British broadcaster Sky PLC (LON:SKY).

With Comcast announcing on Monday that it has abandoned its bid for Fox, Disney has become the sole suitor in its quest for an acquisition.

Comcast’s interest in buying the assets first emerged early last month when talks between Fox and Disney were believed to have ended.

Since then, it is understood Fox and Disney have revived talks, with many analysts seeing it as the most likely coupling.

On its decision to exit the bidding process, Comcast said: “When a set of assets like 21st Century Fox’s becomes available, it’s our responsibility to evaluate if there’s a strategic fit that could benefit our company and our shareholders.

"That’s what we tried to do and we are no longer engaged in the review of those assets. We never got the level of engagement needed to make a definitive offer."

Last week the Murdoch family tried to ease employee concerns about a possible sale of Fox’s assets in a memo, which read: “While we can’t comment on market speculation, we do want to address the impact we know this is having on all of you. Uncertainty always breeds unease. In every way, our focus is on our businesses and on the welfare of all our colleagues.”

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