21st Century Fox Inc accepted $71 billion bid from Walt Disney Co for its entertainment assets.
21 st Century Fox Inc shareholders will receive a number of Disney shares equal to $38 in value if the average Disney stock price at closing is between $93.53 and $114.32.
Disney’s new offer is worth $71.3 billion in cash and stock. Disney is expected to pay a total of about $35.7 billion in cash and issue about 343 million new shares to 21CF shareholders, according to Reuters.
The new agreement also offers more flexibility and other enhancements than the Comcast offer, Fox said on Wednesday.
The new offer of $38 a share, which would be split 50-50 in cash and stock, is $10 higher than Disney’s first bid in December 2017.
According to FOX Business’ Charles Gasparino, citing his sources, Comcast is plotting its next move, and will likely increase their bid for 21CF’s assets. Gasparino added that ‘banker talk’ has Comcast bidding at least $41 per share.
Disney also plans to take on about $13.8 billion of Fox’s net debt. That would lift the total transaction value above $85 billion.