Shareholders in 21st Century Fox will get their chance to determine whether the company sells the bulk of its assets to Walt Disney Company or consider a potential offer from Comcast Corp. with a July 10th investor meeting having been scheduled.
Fox is convening the meeting to vote on the $52.4 billion agreement to sell Fox assets like FX and the 20th Century Fox studio to Disney. This sets up a potential showdown between the Mouse House and the Philadelphia cable giant for Murdoch’s bag of goodies.
Under the terms of Disney’s proposed deal, Fox would be on the hook to pay a breakup fee of $1.52 billion to Disney if Fox pulls out of the pact for any reason beyond a regulatory block of the transaction. That means if the Comcast offer is considerably more than $54 billion, then it would be a tantalising prospect.
Both companies see owning Fox’s entertainment assets as a win that would help them stay competitive in an era in which streaming-video companies dominate and keep on growing. Fox said its board of directors recommended stockholders vote in favor of the proposal to sell to Disney.