Comcast pulls offer for Fox assets

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Comcast announced that it has abandoned its plans to acquire Twenty-First Century Fox’s entertainment assets to focus on its offer for Sky.
Sources familiar with the company’s thinking told Reuters that Comcast dropped its bid for the Fox assets because it was concerned the price was becoming too high. It was also worried how much revenue it would lose in divesting assets to appease U.S. antitrust regulators. Another reason was that the bidding war was inflating the value of Sky.
“Comcast does not intend to pursue further the acquisition of the Twenty-First Century Fox assets and, instead, will focus on our recommended offer for Sky,” said the company in a statement.
The U.S. giant had offered USD 65 billion for the assets, which include Fox’s movie studios, pay TV businesses and a stake in Hulu. However, Disney exceeded that proposal by offering USD 71 billion.
“I’d like to congratulate Bob Iger and the team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company,” said in a statement Brian L. Roberts, Chairman and CEO of Comcast Corporation. Fox shareholders will vote on Disney bid on July 27.