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Why Did 21st Century Fox Stock Jump More than 4% on Monday?

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Dec. 4 2020, Updated 10:53 a.m. ET

Fox stock rose on Comcast’s offer

Media giant Comcast (CMCSA) is reportedly getting ready to make an all-cash offer to acquire most of the assets of 21st Century Fox (FOXA). As per a Reuters report, the actual offer value isn’t known, but Comcast is exploring financing options to challenge Disney’s (DIS) purchase of Fox’s assets.

Following the Reuters report, Comcast stock fell 1.51% to $31.90 on Monday after market hours while Disney fell 0.5% to $102 per share. Fox stock jumped ~4.02% to about $39.57 per share.

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Comcast’s offer hits Disney 

According to the report, Comcast is preparing to make a hostile bid for 21st Century Fox’s entertainment assets, which Fox agreed to sell to Disney for $52.4 billion in December. Comcast is asking investment bankers to arrange for as much as $60 billion in new financing for Fox’s assets, which means Comcast is set to outbid Disney’s bid. 

Comcast believes the acquisition of Fox’s film, television, and international businesses will help it combat growing digital rivals that are attracting traditional pay-TV subscribers with lower video entertainment prices. Comcast is also expected to boost its revenues with the deal.

However, Comcast CEO Brian Roberts plans to proceed with the bid if AT&T’s (T) proposed $85 billion acquisition of Time Warner (TWX) gets the green light. Currently, the AT&T–Time Warner deal is facing trials in federal court after the US Department of Justice opposed and then blocked the deal over antitrust concerns. A decision from US District Court Judge Richard Leon is expected by June 12.

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