Comcast on Thursday dropped out of a bidding war with Disney for prized film and television operations of Rupert Murdoch's 21st Century Fox, effectively clearing a path to a new landscape in the media-entertainment world. The cable and media giant said in a statement it would instead focus on acquiring the European pay TV operator Sky, shifting its stand on how it approaches the latest round of consolidation in the media-entertainment sector.
The move effectively ensures that Disney will be able to complete its $71.3 billion tie-up with Fox that creates a new powerhouse in the sector as Murdoch slims down his media empire. "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," said a statement from the group which is the leading US cable operator and also owns NBCUniversal.
Brian Roberts, Comcast chairman chief executive, added: "I'd like to congratulate (Disney CEO) Bob Iger and the team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company." Both Comcast and Disney had been coveting the prized assets being sold by Murdoch, which include the Fox studios in Hollywood and important film and television production operations.
The acquiring company would have stood to become a dominant force at the box office and in television, with production companies responsible for "The Simpsons" and "Modern Family," and a key stake in the online platform Hulu. At the same time, a battle has been heating up over Sky, the British-based pay TV operator in which Fox holds a 39 percent stake.
Disney launched its offer for Fox's assets last December at $52.4 billion as Murdoch and his family announced they would reorganize to focus on Fox News, the Fox broadcast network and some sports operations.
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