Walt Disney Co. is prepared to offer 21st Century Fox Inc. significant cash, if needed, in an effort to fight off any competing bids from Comcast Corp., CNBC.com reported May 29, citing sources.
Fox has agreed to sell most of its movie and TV assets for $52.4 billion in stock to Disney, but Comcast Corp. recently said it was in advanced stages of preparing an all-cash counteroffer for Fox. According to the report, Comcast will only submit a bid if a federal judge approves AT&T Inc.'s proposed merger deal with Time Warner Inc.
Disney is reportedly lining up banks in case the Fox board demands cash for its media assets.
Recently, Fox activist investor Chris Hohn said he will back Comcast's bid over the current offer from Disney. American Cable Association President and CEO Matthew Polka, meanwhile, said that Comcast preparing an offer to challenge Disney's deal to buy Fox assets "is not good for consumers and competition."
