Fox Stock Rockets 7 Percent After Big Disney Offer

Deal will “will unlock even more value for shareholders,” says Rupert Murdoch

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21st Century Fox shareholders enjoyed another big day on Wednesday, with the stock jumping 7.54 percent on the day, hitting $48.08 per share.

The gains, coming on the same day that Disney increased its acquisition offer for most of Fox’s film and TV businesses, were a continuation of a month-long run on Wall Street. Fox has seen its share price increase 26 percent as Comcast and Disney battle over the company.

The Mouse House threw its latest punch on Wednesday morning, upping its offer to $71.3 billion in cash and stock for much of Fox’s TV and film business.

Fox had originally agreed to a $52.4 billion offer from Disney last December, but Comcast has looked to pry the deal away, offering Fox a $65 billion all-cash buyout earlier this month.

Fox’s Wall Street run continued on Wednesday (via Google)

 

Fox executive chairman Rupert Murdoch reiterated his support for doing business with Disney on Wednesday.

“We are extremely proud of the businesses we have built at 21st Century Fox, and firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace at a dynamic time for our industry,” said Murdoch.

“We remain convinced that the combination of 21CF’s iconic assets, brands and franchises with Disney’s will create one of the greatest, most innovative companies in the world.”

Wall Street liked the deal for Disney and Comcast as well. Disney jumped 1 percent on the day, and Comcast increased about 1.8 percent.

The Fox acquisition was seen as key for Disney as it prepares to launch its own streaming service next year to rival Netflix, and getting the Fox assets, which include film and TV franchises like “X-Men,” “Avatar,” “Fantastic Four,” and “The Simpsons,” could be the last piece of the puzzle.

Fox’s 22 regional sports networks would also give ESPN a huge lift for its nascent streaming service that was launched in April.

Fox said in a statement on Wednesday it has pushed back a board meeting scheduled for July 10 to continue weighing its offers.

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