Is all of this taking into account the merger with Disney?
Fred.
Dont know if You saw The NEws but comcast is going To put In a Bid for sky for Like $31 billion That Will Complicate That Merger.
From wall street journal...
In one gambit, Comcast Chief Executive Brian Roberts has scrambled the game board in multiple ways. Comcast said Tuesday it was planning a £22.1 billion ($30.9 billion) offer for all of Sky, topping a rival bid from
21st Century Fox Inc.
to consolidate ownership of the U.K. broadcaster. Fox already owns 39% of Sky.
Comcast’s announcement also creates complications for Walt
Disney Co.,
which agreed to acquire an array of Fox assets, including the Sky holding, in a $52.4 billion deal hatched late last year.
As a result of Mr. Roberts’s maneuver, Fox Executive Chairman Rupert Murdoch and Disney CEO Robert Iger must decide whether to outdo Comcast’s bid for Sky. Fox’s board may need to show shareholders it got the best possible value for the company’s 39% Sky stake under the deal with Disney.
...
Comcast hasn’t taken off the table the option of reviving its pursuit of additional Fox assets, depending on a number of factors, people familiar with the situation said, though at the moment its prime focus is on completing a Sky deal. Mr. Roberts said on a conference call Tuesday he hadn’t spoken with the Murdoch family since they broke off talks two months ago.
Mr. Roberts’s efforts are disrupting plans for two companies that have each spurned his overtures in the past. Disney in 2004 rebuffed a hostile takeover by Comcast.
...
Fox’s Sky bid requires approval of 75% of non-Fox shareholders in Sky, a high hurdle that Comcast feels it can prevent Fox from reaching, one of the people familiar with the matter said. Fox could switch to a bid that requires approval from a simple majority of non-Fox shareholders, but that could further lengthen the acquisition process.
Big investors, including U.S. hedge-fund manager Paul Singer’s Elliott Management Corp., have recently poured money into Sky shares, betting on a higher bid.
In its deal with Disney, Fox agreed to sell the 39% of Sky it already owns, plus the additional 61% if its bid for full ownership of the broadcaster is ultimately successful.
...
If Fox wanted to raise its bid for Sky or accept Comcast’s richer offer for its Sky holding, it would likely need signoff from Disney in either scenario. Fox could also hold on to its 39% stake and become a partner in Sky with Comcast.
Fox would be required to pay Disney a $1.53 billion breakup fee if Fox’s board changed its recommendation for the Disney deal. Similarly, Disney would have to pay Fox the same breakup fee if a change in Disney’s board recommendation for the merger caused Fox to end the pact.