Fox, Disney reach agreement on amended merger

Business 6/20/2018, 2:11 PM
Fox, Disney reach agreement on amended merger

Mass media giant The Walt Disney Company and 21st Century Fox reached an agreement on "amended and restated" merger deal of $71.3 billion, Fox's board announced on Wednesday after also considering Comcast's offer. The statement comes after Disney raised its initial stock deal to $38 per share to compete with Comcast's $65 billion offer.

"The amended and restated Disney Merger Agreement offers a package of consideration, flexibility and deal certainty enhancements that is superior to the proposal made by the Comcast Corporation on June 13, 2018," the company said.

On Monday, it was reported that Walt Disney Co. was thinking of increasing its own offer and was ready to offer a significant portion in cash in its pursuit to secure the purchase. In December 2017, Disney offered $28 per share to buy Fox's movie and television assets. Now, the new offers stand above Comcast's bid of $35 a share.

Following the announcement, Fox shares jumped 5.14% in premarket trade on Wall Street while Disney's stock rose 1.82% and Comcast's fell by 0.49%.

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