UPDATE – Fox Business sources suggest that CMCSA will be making a new bid to acquire FOXA in the ongoing bidding war with DIS. No confirmation has come from either side. We’ll continue watching and bring the news to you as it breaks!
Twenty-First Century Fox Inc (NASDAQ: FOXA) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has entered into an amended merger agreement with The Walt Disney Company (NYSE: DIS) that comes with a higher price for FOXA. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from the stock as a result; and
- what we’ll be watching for haead.
DIS Sweetens The Pot For FOXA
As mentioned above, Twenty-First Century Fox is having an incredibly strong day in the market today after announcing that it has entered into an amended and restated merger agreement with the Walt Disney Company. Under the amended and restated agreement, DIS has agreed to acquire FOXA at a price per share of $38. That’s a massive jump from the original price of $28 per share that was stated in the original marger agreement that was signed back in December of 2017. Ultimately, Disney is sweetening the pot in the midst of a bidding war as Comcast Corporation (NASDAQ: CMCSA) steps up to the plate looking for their piece of the pie. In a statement, Rupert Murdoch, Executive Chairman at FOXA, had the following to offer:
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… 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.
What We’re Seeing From The Stock
With the news that Disney has agreed to lay out more money in order to acquire Twenty First Century Fox, investors are clearly excited. What makes this more exciting is the fact that Comcast is working its way in there. Of course, we do believe that Disney will win the bidding war, but Comcast could continue to drive the price up before the transaction closes. Nonetheless, with the pot sweetened, investors are diving in, looking for their share. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:38), FOXA is tradinga t $47.41 per share after a gain of $2.70 per share or 6.04% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on FOXA. In particular, we’re interested in following the story surrounding the acquisition. As the bidding war heats up, this may not be the only price increase we see. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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