Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Comcast Corporation    CMCSA

COMCAST CORPORATION

(CMCSA)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Fox to craft script for M&A summer blockbuster

share with twitter share with LinkedIn share with facebook
share via e-mail
06/20/2018 | 01:31am EST
FILE PHOTO: The Twenty-First Century Fox Studios flag flies over the company building in Los Angeles

(Reuters) - Twenty-First Century Fox Inc's board is set to decide on Wednesday whether to entertain Comcast Corp's $65 billion cash bid for the New York-based media company or stick with its roughly $52 billion all-stock offer from Walt Disney Co, people familiar with the matter said.

Disney and Comcast are battling to win Fox's movie and television studios at a time when legacy media and distribution companies are looking to expand to better compete with younger media firms like Netflix Inc that sell their content directly to viewers. Fox’s international assets such as Star India appeal to both Disney and Comcast, which want to expand their global presence.

While Fox's board has yet to make a decision, analysts and industry dealmakers widely expect Fox to say that Comcast's bid could potentially lead to a better deal for its shareholders. If it does, Fox would then be allowed to negotiate with Comcast and take a closer look at its offer. This would be the time for Fox to learn more about Comcast's commitments when it comes to regulatory approval, for example.

"Let the ping-pong tournament begin, as Comcast won’t let Fox brush off its all-cash premium offer without a fight," Macquarie analyst Amy Yong said in a research note last week.

Once Fox engages in talks with Comcast, it will then have to determine if the offer is definitively a superior deal for Fox shareholders, compared with its agreement with Disney. This will be the first step that could lead to a bidding war as Disney will then have five business days to put a revised offer on the table, according to its merger agreement.

Disney could sweeten its all-stock bid with cash, given its strong balance sheet and the potential boost to earnings per share, according to the people familiar with the matter.

Technically, Fox could also rebuff Comcast's bid on Wednesday, but that is unlikely, said Morningstar analyst Allan Nichols.

"Because of the liabilities of the board I don't think they can outright say no to Comcast's offer. You at least need to do some kind of review process," he said.

TAX, ANTITRUST CONCERNS

In its review, Fox will need to decide whether Comcast's richer, all-cash offer is enough to offset the antitrust risk and potentially higher tax liabilities for some of its shareholders, analysts said.

A U.S. court's recent approval of AT&T Inc's merger with Time Warner Inc raised the likelihood that Comcast's similar proposed deal with Fox would get the green light from regulators, they said.

However, there are still concerns that some aspects of the proposed deal could complicate an antitrust review, they added.

Craig Moffett, an analyst at Moffett Nathanson, said that the Justice Department never addressed the question of whether internet providers such as Comcast could give an advantage to its own content at the expense of competitors.

For example, Comcast could give its internet subscribers easier or faster access to content from Hulu, which it would gain control over by buying Fox, than that of other media streaming services, the analysts said.

If an all-cash bid does eventually beat a stock offer, it could have a bigger tax hit on Rupert Murdoch, Fox's largest shareholder, who controls 17 percent of the company's voting shares along with his family.

Reuters previously reported before the details of Comcast's offer were made public that the financial impact on Murdoch would be big enough for him to prefer an all-stock transaction, which would be nontaxable for all Fox shareholders.

That potentially puts Murdoch, who remains the most powerful voice inside the company, at odds with some Fox shareholders who would be open to abandoning the Disney deal if Comcast's cash offer was high enough.

(Reporting by Carl O'Donnell in New York; Editing by Liana Baker and Matthew Lewis)

By Carl O'Donnell

Stocks mentioned in the article
ChangeLast1st jan.
AT&T -0.16% 38.25 Delayed Quote.-2.12%
COMCAST CORPORATION 0.04% 46.09 Delayed Quote.2.49%
FOX CORPORATION -0.53% 37.8 Delayed Quote.1.97%
WALT DISNEY COMPANY (THE) -0.97% 139.54 Delayed Quote.-3.52%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on COMCAST CORPORATION
02/11Lyft forecasts slower growth in 2020, leaves target profit date unchanged
RE
02/11Lyft forecasts slower growth in 2020, leaves target profit date unchanged
RE
02/11Parasite' Backer CJ Entertainment Taking Stake in Blockbuster Producer Skydan..
DJ
02/11COMCAST : Xfinity Mobile to Offer New Samsung Galaxy S20+ 5G and Galaxy S20 Ultr..
BU
02/07COMCAST : Announces Redemption of $1.005 Billion of 4.45% Senior Notes due March..
BU
02/06ViacomCBS to launch new streaming platform
RE
02/06COMCAST : Lifting Others as a Role Model in Tech
PU
02/06COMCAST : California Adds Two New Executives to Its Senior Leadership Team
BU
02/05COMCAST : Andre Iguodala Joins Comcast Ventures' Catalyst Fund
BU
02/05Google Shows Off YouTube's Ad Heft -- WSJ
DJ
More news
Financials (USD)
Sales 2020 114 B
EBIT 2020 22 026 M
Net income 2020 13 389 M
Debt 2020 88 376 M
Yield 2020 1,99%
P/E ratio 2020 15,9x
P/E ratio 2021 14,9x
EV / Sales2020 2,61x
EV / Sales2021 2,51x
Capitalization 210 B
Chart COMCAST CORPORATION
Duration : Period :
Comcast Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends COMCAST CORPORATION
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 36
Average target price 51,37  $
Last Close Price 46,09  $
Spread / Highest target 38,9%
Spread / Average Target 11,5%
Spread / Lowest Target -4,53%
EPS Revisions
Managers
NameTitle
Brian L. Roberts Chairman, President & Chief Executive Officer
Michael J. Cavanagh Chief Financial Officer & Senior Executive VP
Jeff Votaw Vice President-Engineering
Kenneth J. Bacon Independent Director
Sheldon M. Bonovitz Director
Sector and Competitors
1st jan.Capitalization (M$)
COMCAST CORPORATION2.49%209 849
WALT DISNEY COMPANY (THE)-3.52%251 931
VIACOMCBS INC.-16.65%21 721
THE LIBERTY SIRIUSXM GROUP3.28%15 678
FORMULA ONE GROUP1.93%10 762
RTL GROUP-0.23%7 303