It doesn't take a fission scientist to come up with a solution Comcast takes the international assets and Disney takes the domestic ones. And if both Comcast and Disney want Hulu, they can halve Fox's 30 percent ownership.
But it may be too late. There are no talks between the two companies about splitting Fox, according to people familiar with the matter.
That's because Disney had no need to invite Comcast to split the assets when it reached a deal with Fox last year. But Judge Richard Leon's
ruling on Wednesday that
AT&T could buy
Time Warner without conditions changed the calculus.
Now Comcast has overbid Disney by about $9 billion (based on today's movement in Disney shares) for the same Fox assets. If Iger wants to avoid a bidding war and split the assets now, Fox would need to release him from the companies' signed deal agreement. That's unlikely to happen, because it could prevent Fox from getting the highest price for the assets it wants to sale a bidding war is just fine for Fox shareholders.
So even though both companies want Fox's assets for different reasons, and are willing to divest similar unwanted parts like regional sports networks, both companies are now fighting for the whole bundle of assets, including cable stations FX and Nat Geo and Endemol Shine Group.
...
Disney is actively considering its options, including an increased cash-stock offer, according to a person familiar with the matter. Given the stakes and the personalities involved, don't expect either company to back down without a fight.
