CHILDREN IN THE DETENTION CENTER
S AT THE BORDER WE'LL GET
YOU MORE AS THIS BECOMES
AVAILABLE DOW JONES INDUSTRIAL
IS DOWN 314 POINTS THE COUNTDOWN
CLOCK IS ON AS INVESTORS,
ANALYSTS AND EXECUTIVES FROM
BOTH 21ST CENTURY FOX AND
COMCAST WAIT FOR WHAT COULD BE
AN IMMINENT COUNTERBID BY DISNEY
FOR FOX BUSINESS PARENT COMPANY
21ST CENTURY FOX'S ENTERTAINMENT
ASSETS.
FOX HAS ALREADY ACCEPTED DISNEY
'S ALL STOCK OFFER THAT
ORIGINALLY CAME IN AT ABOUT
$52.4 BILLION WHEN ANNOUNCED
BACK ON DECEMBER 14 BUT NOW, AS
FOX STOCK HITS YET ANOTHER
RECORD HYATT THIS HOUR, THE ALL
STOCK DEAL HAS A VALUE MORE LIKE
55 BILLION BUT IT'S A MOVING
TARGET.
TOMORROW THE FOX BOARD OF
DIRECTORS ON YOUR SCREEN RIGHT
NOW WILL MEET TO CONSIDER
COMCAST'S ALL CASH OFFER OF
62 BILLION, SO IT'S HIGHER AND
IT'S ALL CASH.
NOW, IF THE BOARD LIKES IT
BETTER THAN DISNEY'S OFFER,
DISNEY HAS JUST FIVE DAYS TO
COUNTER, SO WHAT WILL DISNEY'S
NEXT BID FOR FOX LOOK LIKE
JOINING ME NOW THE ANALYST WHO
SCRUTINIZED MEDIA DEALS FOR
DECADES.
>> [LAUGHTER]
LIZ: YOU'RE THE BEST.
THANK YOU.
LIZ: MEDIA TECH CAPITAL PARTNERS
MANAGING PARTNER.
>> THANK YOU.
LIZ: I DON'T WANT TO ASSUME
ANYTHING SO LET ME PHRASE IT TO
YOU THIS WAY.
WHAT'S DISNEY'S CEO DOING RIGHT
NOW, HAVING LUNCH WITH HIS
FRIENDS OR CRAFTING THE NEXT BID
>> HE'S SHARPENING HIS PENCIL
AND PUTTING HIS NEXT BID
TOGETHER BECAUSE HE'S NOT
WALKING AWAY.
LIZ: WHAT DOES IT HAVE TO LOOK
LIKE?
>> WELL RIGHT NOW THE TWO BIDS
COMCAST 65 AND DISNEY'S 52.4,
THEY'RE A WASH FROM A TAX
PERSPECTIVE BECAUSE THE DISNEY
DEAL IS ALL STOCK AND IT'S TAX
FREE FOR THE MOMENT.
LIZ: BUT THE LARGEST SHAREHOLDER
WHICH WOULD BE RUPERT MURDOCH
WHICH OF COURSE IS THE CHAIRMAN.
>> THE MURDOCK FAMILY TRUST I
THINK IN MR. MURDOCK'S MIND HE
WANTS TO BE THE LARGEST
SHAREHOLDER IN DISNEY AND HE
SEES UPSIDE GOING FORWARD SO
DISNEY IS NOT GOING TO TRY TO
BEAT THE COMCAST OFFER BUT
THEY'RE GOING TO HAVE TO RAISE
THEIR BID, BECAUSE THE MARKET,
THIS IS SAYING, YOU CAN NOT GO
WITH THE DISNEY BIDS AS IT
STANDS.
LIZ: THERE ARE MULTIPLE WAYS TO
RAISE A BID.
YOU CAN ADD CASH.
>> RIGHT.
LIZ: YOU COULD MAKE IT MORE
STOCK.
YOU CAN ALSO PROMISE TO DIVEST
OF CERTAIN THINGS TO MAKE IT
MORE REGULATORY TASTEFUL.
>> WELL BOTH COMCAST AND DISNEY
HAVE AGREED, BECAUSE THEY ARE A
LITTLE BIT STILL ABOUT THE
JUSTICE DEPARTMENT INTERVENTION
SO THEY SAID THE 21 FOX REGIONAL
SPORTS NETWORKS BOTH SIDES ARE
HAPPY TO DIVEST THEM.
LIZ: BUT THEY GET THE REGIONAL
SPORTS NETWORKS IN THE DEAL, BUT
--
>> BUT THEY'RE GOING TO SELL
THEM.
LIZ: AND DISNEY HAS ESPN BUT
THEY SAY WE'LL GET RID OF THOSE
IF YOU WANT US TO.
>> LIZ THE KEY TO THIS DEAL
WITH COMCAST, FOX, AND DISNEY,
IS THE OUT OF TOWN TRY-OUT
THAT'S OCCURRING RIGHT
NOW IN THE UK OVER SKY, BECAUSE
DISNEY HAS TO I'M SORRY, COMCAST
HAS FIVE DAYS UNDER THE EU AND
UK REGULATIONS TO PUT THEIR BEST
BID ON THE TABLE.
DISNEY WANTS, BOB IGER
DESPERATELY WANTS SKY AS
WELL AS THE OTHER FOX
ENTERTAINMENT ASSETS.
HE'S GOING TO HAVE TO COUNTER
THAT.
YOU'RE GOING TO SEE THIS
DOMESTIC PLAY PLAY OUT WHEN
SOMEBODY GETS SKY, BUT WHAT THIS
IS RUPERT MURDOCH'S BIGGEST DEAL
AND HE'S IN THE CAT BIRD SEAT.
HE CANNOT, FOX SHAREHOLDERS
CANNOT LOSE AND IT'S GOING TO GO
THROUGH THE ROOF IN TERMS OF
VALUE.
LIZ: THEN WE NEED TO THROW IT
BACK IN THE BOARD MEMBERS.
>> RIGHT.
LIZ: SO IF WE PUT UP THE BOARD
MEMBERS EVERYBODY FROM CHASE CAR
EY, WHO USED TO RUN 21ST
CENTURY FOX, TO THE MURDOCK
SONS, JAMES AND LACHLAN, AND A
WHOLE HOST OF BIG BUSINESS
PEOPLE AND ARE THEY LOOKING AT
IT FROM THE STANDPOINT OF WHAT
RUPERT WANTS, AND HE WAS ONE OF
THE FIRST THUNDERS OF FACEBOOK,
THE GUY HAS DONE VERY WELL,
SMART BUSINESSMAN, DO THEY LOOK
AT IT FROM A STANDPOINT OF ALL
SHAREHOLDERS EVEN THE LITTLE GUY
OR SOME OF OUR VIEWERS WHO WANT
A COUPLE SHARES OR A COUPLE
THOUSAND SHARES?
>> WELL RUPERT MURDOCH HAS TO
PAY ATTENTION TO HIS BOARD AND
HIS SHAREHOLDERS BUT IT'S
CURIOUS THAT JAMES AND LACHLAN
MURDOCK HAVE BOTH
ARTICULATED THE FACT THAT THEY
FAVOR THE HIGHEST BID,
REGARDLESS OF WHO MAKES IT.
LIZ: WILL IT GO DOWN TO THE WIRE
BECAUSE TOMORROW IS THE MEETING
WHERE THEY WILL CONSIDER THE
COMCAST BID, SO DOES DISNEY HAVE
TO BE PRETTY MUCH SIGNED, SEALED
AND DELIVERED BY TONIGHT?
>> THEY ACTUALLY HAVE UNDER THE
TERMS OF THE OFFER THAT THEY
MADE BACK IN DECEMBER, THEY HAVE
SOMETHING CALLED THE LAST
REFUSAL.
THEY CAN WAIT AND WAIT AND WAIT
AND SEE HOW THE SHAREHOLDERS OF
FOX DECIDE AND IF THEY GO FOR
COMCAST, DISNEY HAS STILL