The Walt Disney Company has upped the ante on its offer for Twenty-First Century Fox, agreeing to raise its bid to $38 per share from $28 as part of an amended merger agreement.
Fox (FOX) announced the new bid in a statement released on Wednesday, adding that the new Disney (DIS) merger agreement features “deal certainty enhancements” that would make it more enticing to Fox shareholders than Comcast‘s $65 billion offer made on June 13 (CMCSA).
As part of the new merger agreement, Fox stockholders would be allowed, “to elect to receive their consideration, on a value equalized basis, in the form of cash or stock, subject to 50/50 proration.” Due to the collar on the stock consideration, Fox shareholders will guaranteed a number of Disney shares equal to $38 if the average Disney stock price is between $93.53 and $114.32 at close.
“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 21st century Fox Executive Chairman Rupert Murdoch in the statement. “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.
Fox previously announced that a special stockholders meeting would be held on July 10 to the decide the fate of Disney’s previous offer. In light of the new agreement, however, Fox decided to postpone the meeting to a date that has yet to be announced.