Walt Disney Raises Offer for Fox to $38 Per Share After Comcast’s Rival Bid

Walt Disney (DIS) raised its offer for 21st Century Fox (FOX, FOXA) to $38 per share in cash and stock after Comcast (CMCSA) made a rival offer for the entertainment company’s assets left after a spinoff.

The amended deal sees shareholders given the choice to opt for cash or stock in a deal with a total equity value of $71.3 billion, Disney said in a statement on Wednesday. Disney expects to pay $35.7 billion in cash and issue about 343 million new shares to Fox investors, representing about a 19% stake in Disney on a pro forma basis.

“The acquisition of 21st Century Fox will bring significant financial value to the shareholders of both companies,” said Robert Iger, Disney’s chairman and chief executive officer. “After six months of integration planning we’re even more enthusiastic and confident in the strategic fit of the assets and the talent at Fox.”

Disney’s new bid comes after cable company Comcast made an all-cash offer of $65 billion, or $35 a share earlier this month. In Disney’s original bid in December, it offered $28 a share.

A collar on the stock consideration in Disney’s new offer “will ensure that 21st Century Fox shareholders will receive a number of Disney shares equal to $38 in value if the average Disney stock price at closing is between $93.53 and $114.32,” Fox said in a statement.

The businesses to be acquired include Fox’s film production businesses and television creative units. The spinoff of so-called New Fox, which are separate to the Disney deal, include Fox News Channel and Fox Business Network. Disney

“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,” said Rupert Murdoch, executive chairman of 21st Century Fox, in a statement Wednesday.