US cable giant Comcast has confirmed that it’s prepping an all-cash offer for most of the media assets of Twenty-First Century Fox.
The tender will likely set up a bidding war with Walt Disney Co, which already has a $52 billion all-stock deal with Fox on the table. Fox has agreed to sell everything except its US TV holdings, which include cable networks Fox News, Fox Business and Fox Sports; the nationwide FOX broadcast network; the TV stations group; and other sports networks, including FS1, FS2, Fox Deportes and Big Ten Network.
“While no final decision has been made, at this point the work to finance the all-cash offer and make the key regulatory filings is well advanced,” Comcast said in a statement.
Fox’s largest shareholder, Rupert Murdoch, would be hit with a multi-billion dollar capital gains tax bill if he accepted an all-cash offer according to the Reuters news agency, which may put a dampener on Comcast’s hopes.