Comcast Approached 21st Century Fox About an Acquisition -- Update
November 16 2017 - 6:16PM
Dow Jones News
By Dana Mattioli, Keach Hagey and Ryan Knutson
Comcast Corp. has approached 21st Century Fox to express
interest in buying a substantial piece of the company's business,
according to people familiar with the situation, underscoring that
Rupert Murdoch's media empire has quickly become an attractive
acquisition target.
The cable giant is interested in assets similar to those Walt
Disney Co. pursued when it recently held talks with 21st Century
Fox, some of the people said. The Disney talks, which fell apart,
included the Twentieth Century Fox studio, some U.S. cable networks
and the international business, but not Fox News, the Fox broadcast
network or sports channels.
Comcast is particularly interested in Fox's international
assets, one of the people familiar with the situation said.
Verizon Communications Inc. also is kicking the tires on 21st
Century Fox's assets, though a person familiar with its thinking
cautioned the exploration was in the early stages. It is possible
other players are in pursuit of Fox.
Any deal would be sizable. 21st Century Fox has a market
capitalization of $53.68 billion.
And it is uncertain how regulators would receive it. AT&T
Inc.'s pending takeover of Time Warner Inc., a giant combination of
distribution and content, has run into resistance in Washington,
and could be headed for a court battle.
The notion that Comcast would make a large bet on more media
content in this environment is surprising. The cable company
acquired NBCUniversal in 2011, integrating a host of cable TV
networks, the NBC broadcast network and the Universal studio. And
one reason antitrust enforcers are skeptical about the AT&T
deal is that they believe Comcast hasn't lived up to the spirit of
the conditions regulators put on that 2011 deal, people familiar
with the matter have said.
21st Century Fox and Wall Street Journal parent News Corp share
common ownership.
Reports last week of Fox's discussions with Disney signaled a
new willingness from the Murdoch family to consider a restructuring
of its media empire, a move that shocked the industry and
effectively put Fox in play.
Over the past week, Fox has hosted both its quarterly earnings
call and its annual shareholder meeting. While executives have
declined to address acquisition-related questions, they have taken
the opportunity to emphasize Fox's ability to compete with its
current set of assets.
"There's a lot of talk about the growing importance of scale in
the media industry," 21st Century Fox Executive Co-Chairman Lachlan
Murdoch said at the annual meeting Wednesday. "Subscale players are
finding it difficult to leverage their position into new and
emerging video platforms, but let me be very clear: We are not in
that category."
One of Fox's international assets that has drawn particular
interest is U.K. pay-TV company Sky. Fox already owns a 39% stake
in Sky, but its bid to acquire the rest of the company has faced
significant delays in the U.K. since the approximately $15 billion
bid was announced a year ago. Fox has continued to express
confidence that the deal will close by mid-2018.
Joe Flint and Lukas I. Alpert contributed to this article.
Write to Dana Mattioli at dana.mattioli@wsj.com, Keach Hagey at
keach.hagey@wsj.com and Ryan Knutson at ryan.knutson@wsj.com
(END) Dow Jones Newswires
November 16, 2017 18:01 ET (23:01 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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