With Two Suitors for Fox, the Murdochs Consider Next Steps

The Walt Disney Company has agreed to buy most of 21st Century Fox’s assets in a deal worth $52.4 billion, but things got complicated recently when Comcast made a rival offer that valued the business at $65 billion. It may stoke visions of blistering negotiations between high-powered media executives with big egos barking into phones or ruminating in closed-door meetings, but there are rules of engagement around mergers that are designed to civilize the process.

Fox has already accepted Disney’s offer, which means that the two companies are continuing to move forward with that deal. For now, Fox shareholders are scheduled to vote on that agreement on July 10. At the same time, Fox chairman Rupert Murdoch and the Fox board will be evaluating Comcast’s terms to see if they like them better. That will start with a relatively quick inspection to see if the offer is serious enough and competitive enough to grant Comcast access to its books, known as due diligence.  Fox also wants to be confident any bid will be approved by the government. The Federal Communications Commission, which regulates broadcasters, isn’t a factor. Disney’s proposal isn’t undergoing FCC review, and Comcast said its offer shouldn’t be subject to FCC approval since there won’t be any transfer of broadcast licenses. The Fox broadcast network, Fox News and the sports network FS1 aren’t being sold.