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Tag: 21st Century Fox

  • Murdoch promotes 5 top execs to Fox ahead of Disney deal

    Murdoch promotes 5 top execs to Fox ahead of Disney deal

    MUMBAI: After Disney won the bid to acquire 21st Century Fox (21CF) assets against Comcast earlier this year, future CEO and chairman Lachlan Murdoch has set key leadership positions for the properties left behind in the merger that will now be called new Fox.

    Steve Tomsic, currently deputy CFO for 21CF, will be promoted to chief financial officer at new Fox. Eric Shanks, currently chief operating officer and executive producer at Fox Sports, will become CEO of Fox Sports.

    In a statement, Murdoch said, “Collectively they bring to Fox the vision, entrepreneurial spirit and proven track records to position Fox to seize future opportunities for its leading and deeply resonant brands across sports, news and entertainment.”

    Mike Biard will become president of operations and distribution for Fox, another key revenue function. His current title is president of distribution for the Fox Networks Group.

    Paul Cheesbrough will remain chief technology officer, but his job will be expanded to include oversight of the company’s direct-to-consumer platforms in anticipation of launching a streaming service.

    Marianne Gambelli will see her portfolio expand as she becomes president of ad sales. She manages ad sales for the Fox News channel and the Fox business network.

    Tomsic said, “We are fortunate to be able to continue working with these enormously talented executives who have helped make our businesses the incredible successes they are today.”

    The appointments of the soon-to-be leadership team will take effect after the Disney transaction closes. Disney is buying Fox’s television production and movie studio, FX cable channel, National Geographic, stake in Hulu and such international operations Star India.

  • Comcast outbids 21st CF in Sky deal with $40 bn offe

    Comcast outbids 21st CF in Sky deal with $40 bn offe

    MUMBAI: US cable giant Comcast made a winning bid against 21st Century Fox and the Walt Disney Co for European pay-TV operator Sky by offering nearly $40 billion. The rare three round auction was managed by UK's Takeover Panel.  

    The Philadelphia based company offered about $40 billion at $22.57 per share for Sky in the knockout bid. Rupert Murdoch-owned Fox offered about $35 billion at $20.46 per share.

    “This is a great day for Comcast,” Comcast chairman and CEO Brian L Roberts declared. He hailed Sky as “a wonderful company with a great platform, tremendous brand, and accomplished management team”.

    While 21st Century Fox already owns 39 per cent of the company, both the competitors were contesting for 61 per cent control of Sky. The European pay-TV company has time until 11 October to accept the offer.  Fox has an ardent quest to take over the rest of the Sky it does not already own.

    For any company who wants to expand international business in European countries, Sky would be a lucrative option with its 23 million customer base across five European countries. Hence the over expensive bid from Comcast did not come as a surprise, as it could almost double its user base on the back of the offer. “This acquisition will allow us to quickly, efficiently and meaningfully increase our customer base,” Roberts said in a statement.

    Though the long running bid process has come to an end following the knock out bid, Fox could refuse tender the 39 percent of Sky that it currently owns. It will leave Comcast to share the company with Fox.

  • K Madhavan presents the cheque to Kerala CM Shri Pinarayi Vijayan

    K Madhavan presents the cheque to Kerala CM Shri Pinarayi Vijayan

    MUMBAI: Star India today announced it will increase its donation to Rs 5 crores for the CM’s Distress Relief Fund for the relief and rehabilitation efforts in Kerala. Star India had previously announced a Rs 2 crore donation however seeing the scale of the disaster, Star India and its employees stepped up to increase the donation along with its parent company 21st Century Fox. 

    Star India along with employee contributions of employees of Star India network and matching contributions of Star and parent company 21st Century Fox, have donated a cumulative sum of Rs 5 crores to the Kerala Chief Minister’s Disaster Relief Fund.

    K Madhavan, MD – South, Star India, presented the cheque to Shri Pinarayi Vijayan, Hon’ble Chief Minster of Kerala, today. (Picture attached)

    In addition, Star’s #AllForKerala campaign supported by over 60 stars and celebrities in 8 languages across 50 channels and Hotstar is inspiring millions to join the relief efforts. 

    Uday Shankar, President 21st Century Fox – Asia, and Chairman and CEO – Star India, said, “Our hearts go out to those affected by this tremendous natural disaster. But we are also heartened by the stories of communities helping each other through this difficult time. We believe we must do everything in our power to help along with leveraging the power of our platform to inform and inspire citizens to join the relief and rehabilitation process. I sincerely hope many other companies will be able to provide assistance to families and communities in need of help.”

    K Madhavan, MD – South, Star India,  said, “Kerala is in a terrible state, and we have a huge responsibility, as a media house, to support the situation. We are exploring all the possibilities of how to give them the right support. We think the next phase would involve moving beyond the initial mobilisation and awareness to the longer term focus on rehabilitation and repair, which we shall remain committed to help make happen.”

  • IPL powers 21st Century Fox’s international ad revenue

    IPL powers 21st Century Fox’s international ad revenue

    MUMBAI: At a point when Rupert Murdoch’s media empire 21st Century Fox is preparing to sell the bulk of its film and TV assets to Walt Disney Co (Disney), its fiscal fourth-quarter earnings beat analysts’ expectations. The conglomerate’s total revenue was up 18 per cent from $6.7bn to $7.9bn in the April-June quarter thanks to the higher content revenues at the Filmed Entertainment segment and higher affiliate and advertising revenues at the Cable Network Programming and Television segments.

    Talking about the international revenue, Indian Premier League’s (IPL) contribution was mentioned. “Star India secured Indian Premier League’s global media and digital broadcast rights and, aided by the inaugural broadcast of the IPL, further penetration of its Hotstar platform and continued general entertainment growth, nearly doubled its profit contributions year over year,” the company said in a release. International advertising revenue which increased 55 per cent was led by the broadcast of the IPL at Star.

    While analysts were expecting 54 cents in per-share earnings on $7.55 billion in revenue, it earned 57 cents per share after certain items on $7.94 billion in revenue. Though the stock was unchanged following the release, shares of Fox have surged 62 per cent in the past 12 months in last one year.

    “As we move closer to combining our businesses with Disney and establishing new “Fox”, we are convinced that the paths we are creating for our iconic businesses will drive enduring and growing value for our shareholders,” executive chairmen Rupert and Lachlan Murdoch commented after the result. Lachlan Murdoch reiterated that news and live sports will underpin the profile of the new Fox in a call with analysts.

    The cash-and-stock transaction which is predicted to be closed in the first half of next year is awaiting the green light from more than a dozen countries, including China, Russia and regulators from the European Union, after winning approval from US regulators. Fox will retain its TV stations, Fox Business, Fox News and its sports channels after the sell.

    In such scenario, the three segments cable network programming, filmed entertainment, television boosted their revenue, and the first two improved their operating income too. The filmed entertainment unit which saw revenue jump some 27 per cent to $2.3 billion, the surge was driven largely by the success of Deadpool 2. Revenue from the cable division rose 13.8 per cent and accounted for more than half of overall revenue.

    Fox is still now locked in a bidding war with Comcast over the 61 per cent of Sky it does not currently own. While Comcast’s current offer is higher than Fox’s offering, it still has 46 days to revise its offer.

  • Comcast drops bid for 21st Century Fox assets, cedes prize to Disney

    Comcast drops bid for 21st Century Fox assets, cedes prize to Disney

    MUMBAI: The fierce bidding war between Comcast and Disney has finally ended with the former dropping out of the race to gobble up the prized 21st Century Fox assets. Comcast will now shift its focus towards sealing the Sky deal.

    “Comcast does not intend to pursue further the acquisition of the Twenty-First Century Fox assets and, instead, will focus on our recommended offer for Sky,” the company said in a statement.

    “I’d like to congratulate Bob Iger and the team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company,” Comcast Corporation chairman and CEO Brian L. Roberts said.

    Last month, the US cable giant made a $65.0 billion offer for the Fox assets, trumping Disney’s original $52.4 billion bid. However, Disney went on to make a counter-offer of $71.3 billion in cash and stock.

    Disney has already sought clearance from US department of justice to go ahead of the deal that includes the Twentieth Century Fox film and TV studio, a controlling stake in Hulu, and international properties including Star India.

    The Comcast-Disney tussle will go down as one of the most keenly contested battles in the media and entertainment.

    With traditional power players facing challenges from new streaming services and FAANG companies, Fox’s entertainment assets are bound to help Disney prop up its upcoming streaming service as more and more consumers cut chords every day, especially in US.

    Recently, following the $32.5 billion offer from Rupert Murdoch’s 21st Century Fox, Comcast also increased its offer valuing Sky at $34 billion. The European Pay TV group is a lucrative option for Comcast to stay relevant outside US.

  • Comcast deal riskier than Disney, says Fox

    Comcast deal riskier than Disney, says Fox

    MUMBAI: Everyone is keeping an eye out to know when Fox will pick a partner in the tug of war between Disney and Comcast.

    Now, the American multinational mass-media corporation, 21st Century Fox is telling its shareholders that the deal with Comcast carries higher risk than the deal with Walt Disney. Fox said that risk of the deal being delayed or denied lies due to antitrust regulators. 

    In a SEC filing, Fox outlined eight concerns about the potential Comcast deal. The filing read: “While a potential Disney transaction was likely to receive required regulatory approvals and ultimately be consummated, a strategic transaction with Comcast “a strategic transaction with Comcast would be subject to a greater degree of regulatory uncertainty, including the possibility of an outright prohibition and a higher risk of divestitures and delay to closing, as compared to a strategic transaction with Disney.”

    The board for Rupert Murdoch led company, had stated that a strategic transaction with Comcast continued to carry higher regulatory risk leading to the possibility of significant delay in the receipt of merger consideration as well as the risk of an inability to consummate the transactions.

    Fox has been consistently trying to avoid selling its business to Comcast as Fox officials are of the opinion that a merger with the largest US cable company, Comcast, may not be approved by the federal government.

    According to the  SEC filing, Disney’s bid would have a smoother route to closing as the entertainment company has a mix of businesses.

    Disney’s deal with Fox will include the 20th Century Fox film and TV studios, along with the FX cable channels, Fox’s stakes in Hulu, Sky, National Geographic Partners and more. 

    Fox plans to spin off all its news assets into “News Fox” which will include all Fox broadcasting network and stations, Fox News Channel, Fox Business Networks and others. 

    The good news for Disney comes after the Fox board agreed to Disney’s higher offer of $71.3 billion last week. This was after Comcast made an all cash bid of $65 billion for Fox’s assets. 

    Comcast first approached 21st Century Fox about buying the network’s properties in November 2017, which was just a month before Fox had already struck its first deal with Disney. 

    Also Read:

    What next with Fox-Disney-Comcast ?

    Hulu signs deal for Viacom series

    Endemol Shine hires banks for a possible sale 

    Lachlan Murdoch to lead New Fox after Disney sale, James is out

  • What next with Fox-Disney-Comcast ?

    What next with Fox-Disney-Comcast ?

    MUMBAI: Part poker, part chess. That’s exactly how the Disney-Comcast bidding war for Rupert Murdoch’s entertainment conglomerate – 21 Century Fox – is being played out. The intense, see-saw battle for the media empire, which includes Hollywood studios, cable networks and streaming businesses, isn’t nearing its end just yet. Nine days out of 10, $70 billion will get you whatever your want in life. But when you’re up against Comcast, the tenth day is the one that matters and even $70 billion might not be enough.

    According to analysts and industry insiders, Comcast is set to return to the negotiating table with a new and improved offer in the  low-to-mid $40s a share range. This could effectively take the bidding to $80 billion, 10 more than Disney’s cash and stock offer.

    Disney’s new bid on Tuesday, was 35 per cent higher than its earlier offer and close to $6 billion more than Comcast’s. But as things stand, they could end up paying more than they’d anticipated.

    Why? Because Comcast isn’t likely to budge given the pressure on its pay-TV business. Hence in its attempt to diversify and attain scale, the Fox bid is an important play for the company’s strategy going forward.

    However, the Disney executives know that the six-month head start they enjoy over Comcast in terms of regulatory review, could end up swinging this deal in their favour. Irrespective of what the winning bid is, a Disney-Fox deal, will get past the regulators far quicker than a Comcast-Fox deal is big boss Bob Iger’s belief. 

    And Murdoch understands this. He also understands how eager Bob Iger and Brian Roberts are to shake his hand in order to land some of the world’s hottest properties – 20th Century Fox film studio, the FX and National Geographic cable channels, almost two dozen regional sports networks, a stake in Sky and Star India.

    A handful of investment analysts are watching with their faces grimacing in pain. They worry that the debt both the mouse house and Comcast will take on in their hunger to swallow up Fox could topple them over. But both Iger and Roberts are not perturbed by the carping. 

    We now await the next instalment of this blockbuster. Disney’s made its move, Comcast is on the verge of making one. Call it the chess board or the poker table, Murdoch owns them both.

  • Sky News gets 15-year commitment from Disney in takeover battle

    Sky News gets 15-year commitment from Disney in takeover battle

    MUMBAI: Disney has refrained from selling Sky News without the U.K government’s permission and offered British authorities a commitment to operate Sky News for 15 years. For its part, 21st Century Fox has offered new commitments in an attempt to get its $15 billion bid for Sky over the finish line, including a promise to fund Sky News for 15 years, five more than it had previously offered.

    British culture secretary Matt Hancock said, “In my view, these revised undertakings [commitments] meet the criteria that I set out to the House [of Commons] on 5 June and will help to ensure that Sky News remains financially viable over the long term; is able to operate as a major U.K.-based news provider; and is able to take its editorial decisions independently, free from any potential outside influence”,in a statement.

    Under the proposed plans, Sky News would receive guaranteed funding of £100 million ($132 million) a year.

    The British government set out its agreement on Tuesday with Disney and 21st Century Fox over Sky, if Fox’s bid to take over Sky succeeds. The agreement focuses on how Sky plans to divest Sky News, and the assurances necessary for the news channel’s long-term viability and editorial independence.

    Fox, which is already Sky’s biggest shareholder with a 39.1 per cent stake, first tabled a proposal in December 2016 to buy the remainder of the broadcaster for £11.7bn in a deal valuing the whole of Sky at £18.5bn.

    Fox had already agreed to meet the British competition watchdog’s proposed remedies by the time Hancock spoke to Parliament earlier this month and made offloading Sky News a condition to the Fox bid gaining approval.

    Hancock has now opened a consultation. That ends on July 4 and at that point he is expected to make a final decision.

    Opposition to the Fox bid remains fierce in the U.K. Lobby group Avaaz has been a vocal opponent and was in the High Court in London on Tuesday seeking to persuade a judge that media regulator Ofcom’s June 2017 decision that Fox and the Murdoch family would be fit and proper owners of all of Sky was flawed.

  • Disney makes $70.3 billion counterbid for Twenty-First Century Fox

    Disney makes $70.3 billion counterbid for Twenty-First Century Fox

    MUMBAI: 21st Century Fox has announced that it has entered into an amended and restated merger agreement with The Walt Disney Company pursuant to which Disney has agreed to acquire for a price of $38 per 21CF share the same businesses. Disney agreed to acquire under the previously announced merger agreement between 21CF and Disney. 

    This price represents a significant increase over the purchase price of approximately $28 per share included in the Disney Merger Agreement when it was announced in December 2017.  The amended and restated Disney Merger Agreement offers a package of consideration, flexibility and deal certainty enhancements that is superior to the proposal made by the Comcast Corporation on June 13, 2018.

    Under the amended and restated Disney Merger Agreement, Disney would acquire those businesses on substantially the same terms, except that, among other things, Disney’s offer allows 21CF stockholders to elect to receive their consideration, on a value equalized basis, in the form of cash or stock, subject to 50/50 proration. The collar on the stock consideration 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. 

    “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,” said Rupert Murdoch, Executive Chairman of 21st Century Fox. “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.”

    In light of the revised terms contained in the amended and restated Disney Merger Agreement, 21CF’s board, after consultation with its outside legal counsel and financial advisors, has not concluded that the unsolicited proposal it received on June 13, 2018 from Comcast could reasonably be expected to result in a “Company Superior Proposal” under the Disney Merger Agreement. 

    However, the amended and restated Disney Merger Agreement contains no changes to the provisions relating to the Company’s directors’ ability to evaluate a competing proposal.

    As announced on May 30, 2018, 21CF has established a record date of May 29, 2018 and a meeting date of July 10, 2018, for a special meeting of its stockholders to, among other things, consider and vote on a proposal to adopt the Disney Merger Agreement.  21CF has determined to postpone its special meeting of stockholders to a future date in order to provide stockholders the opportunity to evaluate the terms of Disney’s revised proposal and other developments to date. Once 21CF determines the new date for 21CF’s special meeting of stockholders, the date will be communicated to 21CF stockholders.

  • Endemol Shine hires banks for a possible sale

    Endemol Shine hires banks for a possible sale

    MUMBAI: Netherlands-based TV production company, Endemol Shine Group, has hired Deutsche Bank and Liontree to explore a potential sale that could be valued between $2- $4 billion including debt.  

    Endemol Shine Group is known for its popular programs like Black Mirror, Big brother and MasterChef. 

    Endemol is co-owned by 21st Century Fox and Apollo Global Management in a 50:50 partnership. Both parties agreed to sell their stake if a suitable buyer is found.

    In a  multi-billion dollar media deal ($52 billion) last year, Fox sold 50 per cent stake in Endemol to Disney. That deal is now being challenged by Comcast. 

    Although Fox is supportive of the business, it does not want to acquire Endemol given its deal with Disney. 

    The cash from this sale is likely to go to Comcast or Disney, depending on who ends up with Fox’s assets, according to a report by CNBC. 

    It was earlier reported that United Kingdom based media company, ITV, wanted to consider buying the Endemol Group, should a formal process for sale begin. Whether the company will buy it or give it a pass will be something worth looking into.