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Comcast Steps on the Disney-Fox Deal With An All Cash Bid

Would you rather have cash in your pockets or stock in your account?

That’s one of the many decisions that 21st Century Fox will have to make as the company plans to sell its’ entertainment assets.

In December 2017, the internet started racing when media sources reported that Walt Disney would proceed with a $52.4 billion, all stock deal to acquire 20th Century Fox and other assets. This acquisition would give Disney more control over media content and channel distribution. This would include the following:

  • FX Networks
  • National Geographic
  • 22 regional sports networks
  • Additional 30% stake in Hulu
  • 50% share of Endermol Shine Group
  • Star India Satellite service
  • Fox’s overseas interest in media and telecommunications company Sky

There is no doubt about it. Disney’s acquisition of Fox’s entertainment assets is a really big deal.

As of May 2018, this big deal could turn into a big battle.

Comcast recently announced its’ plan to win over the assets of Fox with a $60B cash deal. This deal is dependent on the results of AT&T’s acquisition of Time Warner.

If Comcast wins the bid war, the company would have a majority stake in Hulu. Currently, Hulu is a joint venture with The Walt Disney Company (30%), 21st Century Fox (30%), Comcast (30%), and Time Warner (10%).

How do you think the Fox deal will end? Would you sell your assets to Comcast or Disney? As a company and an individual, you should consider the tax implications of receiving cash over stock.

Photo Credit: ComicBook.com 

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Disclaimer: Wealthy Women Daily is solely educational and informational, and is not intended to give investment or trading advice of any kind. Not all asset classes are suitable for all investors. Wealthy Women Daily is a research academy that provides you with the data and analysis you need to make an informed investment decision. It is your responsibility to talk to an expert to understand how specific investments will impact you during tax time. 

 

About Charlene Rhinehart, CPA

Charlene Rhinehart is a Certified Public Accountant, Founder of Wealthy Women Daily, and Editor-in-Chief of the Dividend InvestHer and The Wealthy Woman Investor. Charlene is currently the Chair of the Illinois CPA Society Taxation Individual Committee. With over a decade of experience in the financial services industry, Charlene is one of the few leaders who design insights specifically for the woman investor. Charlene’s work has been featured in a variety of publications including the Huffington Post, Black Enterprise, and the American Institute of Certified Public Accountants. In 2019, Charlene released her book “Dividends Are a Queen’s Best Friend”, on Amazon.

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