US: Fox rejects Comcast bid over antitrust concerns

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

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