Comcast’s cash offer for Fox assets may have difficult tax implications, sources say

Comcast‘s efforts to outbid Walt Disney for Twenty-First Century Foxassets may run into tax hurdles, sources told CNBC’s David Faber.

The telecommunications giant said Wednesday it is in “advanced stages of preparing” a “superior” all-cash offer for parts of Fox. Disney agreed in December to acquire those assets, which include Fox’s movie studios and a stake in Sky, for $52.4 billion in stock.

However, Disney’s stock offer would allow Fox to spin off the assets tax-free, while a cash offer from Comcast would result in a taxable spin, sources said.

A deal with Fox would boost Disney’s efforts to dominate video streaming and compete with Netflix.

Shares of Comcast fell 2 percent, and Disney shares trade1.4 percent lower. Fox shares gained 1 percent.

Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.

This entry was posted in Mergers & Acquisitions. Bookmark the permalink.

Leave a Reply