Advertisement
Canada markets close in 5 hours 58 minutes
  • S&P/TSX

    22,161.98
    +54.90 (+0.25%)
     
  • S&P 500

    5,253.72
    +5.23 (+0.10%)
     
  • DOW

    39,785.76
    +25.68 (+0.06%)
     
  • CAD/USD

    0.7381
    +0.0008 (+0.11%)
     
  • CRUDE OIL

    82.35
    +1.00 (+1.23%)
     
  • Bitcoin CAD

    96,090.23
    +1,375.26 (+1.45%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,229.10
    +16.40 (+0.74%)
     
  • RUSSELL 2000

    2,122.77
    +8.42 (+0.40%)
     
  • 10-Yr Bond

    4.2100
    +0.0140 (+0.33%)
     
  • NASDAQ

    16,407.45
    +7.93 (+0.05%)
     
  • VOLATILITY

    12.97
    +0.19 (+1.49%)
     
  • FTSE

    7,964.46
    +32.48 (+0.41%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6821
    +0.0016 (+0.24%)
     

Disney-Comcast Bidding War Has Pushed Twenty-First Century Fox Inc Stock 39% Higher in 2018

What happened

Shares of media giant Twenty-First Century Fox Inc (NASDAQ: FOXA) are up 38.7% in 2018, according to data provided by S&P Global Market Intelligence, as the bidding war for the company heats up.

So what

Disney (NYSE: DIS) was the company that kicked off the bidding war for Fox, offering in late 2017 to pay $52.4 billion in stock for a treasure trove of assets, including film and TV studios, Fox's Hulu stake, and some cable networks. The idea was to consolidate more content under Disney's umbrella so its upcoming streaming services can compete with Netflix.

People eating popcorn and drinking in a movie theater.
People eating popcorn and drinking in a movie theater.

Image source: Getty Images.

ADVERTISEMENT

Comcast (NASDAQ: CMCSA) upped the ante in June by bidding $65 billion in cash, or $35 per share, for the same assets. Disney responded by upping its bid to $71.3 billion in late June, a proposal Fox shareholders will vote on later in July.

Now what

There's immense demand for Fox's assets right now given the fight to build the next streaming giant. Given the recent back and forth, I don't know if there's any more Fox can squeeze out of either company, so the sharp rise in shares may be over. But investors have had a great ride the last few months watching Fox become one of the hottest commodities for sale in the media business.

More From The Motley Fool

Travis Hoium owns shares of Walt Disney. The Motley Fool owns shares of and recommends Netflix and Walt Disney. The Motley Fool has a disclosure policy.