♪
LIZ: A LOVE TRIANGLE APPEARS TO
BE DEVELOPING IN THE BATTLE FOR
21ST CENTURY FOX'S MEDIA ASSETS.
FIRST IT WAS JUST DISNEY AND FOX
GETTING ENGAGED, THE NICE RING.
THEN COMCAST CAME THIS AND SAID,
WELL, MY RING IS BIGGER.
BRIAN ROBERTS, THE HEAD OF THAT
COMPANY, SAYS HE WILL JUMP IN,
AND IT NOW APPEARS CEO OF 21ST
CENTURY FOX, LOCKE LIN MURDOCH,
HAS SOMETHING TO SAY ABOUT THAT.
>> WELL, LET ME GET INTO SOME OF
MY REPORTING, AND I'LL TELL YOU
WHAT 21ST CENTURY SAID IN TERMS
OF CONFIRMING OR DENYING IT.
FROM WHAT I UNDERSTAND FROM 21ST
CENTURY FOX INSIDERS IS, YOU
KNOW, THE CONVENTIONAL WISDOM IS
THAT COMCAST, IF THEY BID -- AND
THEY HAVEN'T, THEY GOT FINANCING
LINED UP, BRIAN ROBERTS, THE
CEO, IS BASICALLY SIGNALING THAT
HE WANTS TO BID PARTICULARLY IF
THE AT&T/TIME WARNER --
LIZ: WELL, IT'S AN ALL-CASH BID.
>> HE'S INDICATING IT'S GOING TO
BE AN ALL-CASH BID.
THE CONVENTIONAL WISDOM THAT OUR
BOARD WILL SUMMARILY DISMISS
THIS, THAT THEY DON'T HAVE TO --
THEY'RE NOT GOING TO LOOK AT IT
BECAUSE THEY HAVE THE DEAL
LOCKED AND LOADED WITH DISNEY TO
SELL OUR ENTERTAINMENT ASSETS.
OF MOST OF OUR ASSETS MINUS US,
FOX BUSINESS AND A FEW OTHER
PROPERTIES.
THAT IS NOT THE CASE, I'M
HEARING.
OKAY, I'M HEARING THAT THEY KNOW
INSIDE 21ST CENTURY FOX THAT IF
COMCAST COMES WITH THIS BID AND,
APPARENTLY, HE SAID IT'S GOING
TO BE LARGER, IT'S GOING TO BE
ALL CASH THAN THE DEAL STRUCK
WITH DISNEY, THEN THEY HAVE TO
ACCEPT IT.
EXCUSE ME, THEY HAVE TO LOOK AT
IT.
AND SO BASICALLY WHAT WE HAVE
HERE IS THE SORT OF PREAMBLE,
WIND-UP TO A PRETTY INTERESTING
BIDDING WAR WHERE, YOU KNOW,
COMCAST COMES IN, AND IF THEY DO
BID -- AND I'LL GIVE YOU A
LITTLE, I'LL GIVE YOU SOME ODDS
ON THAT IN A MINUTE -- YOU KNOW,
WE'RE GOING TO HAVE A THREE-WAY,
AS YOU KNOW, AS YOU SAID, WHAT
DID YOU WANT TO CALL THAT, ME
IMAGINE THE A TWOI?
LOVE TRIANGLE.
LIZ: AND I LOVE YOUR ACCENT.
>> RIGHT?
THAT'S HOW THEY SAY IT IN
WESTCHESTER COUNTY, NEW YORK.
[LAUGHTER]
TODAY WE HAVE THIS POTENTIAL OF,
YOU KNOW, A BIDDING WAR GOING ON
FOR OUR ASSETS.
NOW, WHEN I BOUNCED THIS OFF OF
21ST CENTURY, THEY REFERRED ME
TO THIS COMMENT BY LOUGHLIN
MURDOCH, OUR CEO, WE SHOULD PUT
IT UP ON THE SCREEN WHICH, IN A
SENSE, CONFIRMS IT.
WE SHOULD PUT IT UP.
THERE WE GO.
BASICALLY, THIS WAS DURING A
CONFERENCE CALL.
HE DIDN'T WANT TO GET INTO ALL
SORTS OF SPECULATION, HE SAID I
CAN SAY WE ARE COMMITTED TO OUR
AGREEMENT WITH DISNEY AND ARE
WORKING THROUGH THE CONDITIONS
TO BRING IT TO CLOSING.
BUT THAT --
LIZ: AND THIS IS THE KEY, RIGHT?
>> THIS IS THE KEY.
OUR DIRECTORS THOUGH, OF COURSE,
ARE AWARE OF THEIR FIDUCIARY
DUTIES ON BEHALF OF
SHAREHOLDERS.
LIZ: TRANSLATION --
>> WE HAVE TO LOOK AT IT.
LIZ: FIDUCIARY DUTY MEANS IT IS
ON YOUR SHOULDERS AS A BOARD OF
DIRECTORS TO LOOK AT ALL OFFERS
FOR ANY ASSET.
>> AND TO TAKE THE BEST BID FOR
SHAREHOLDERS, OKAY?
NOW, DOES THAT MEAN THAT AN
ALL-CASH BID THAT'S SLIGHTLY
HIGHER, WHAT IS IT --
LIZ: A LOT HIGHER.
>> IN THE $50 BILLION RANGE.
I THINK 55 WITH ALL CASH.
I COULD BE WRONG, BUT IT'S
HIGHER, RIGHT?
NOW HERE'S THE KICKER, OKAY?
MANY PEOPLE DO KNOW THAT THE
FEDERAL GOVERNMENT, MEANING THE
DONALD TRUMP DOJ ANTITRUST
DIVISION CONSIDERS COP CAST AND
ITS STRUCTURE OF THIS BIG MEDIA
CONGLOMERATE DISTRIBUTION AND
CONTENT AS, YOU KNOW, THE PUBLIC
ENEMY NUMBER ONE IS THE NAME
THAT DONALD TRUMP HAS USED FOR
COMPANY.
BECAUSE THEY'RE SO ALIGNED
AGAINST HIM CULTURALLY THROUGH
"SATURDAY NIGHT LIVE," THROUGH
NEWS CHANNELS LIKE MSNBC AND
NBC.
SO HE HATES THEM.
THE JUSTICE DEPARTMENT HATES
THEIR STRUCTURE, THINKS THEY'RE
TOO POWERFUL.
SO THAT ALL-CASH BID WILL RUN
INTO SOME REGULATORY SCRUTINY
AND MAY EVEN GET REJECTED.
JUST SO YOU KNOW, OUR BOARD OR
CAN STILL MAKE THE CASE DISNEY'S
A BETTER FIT BECAUSE WE'RE GOING
TO GET THROUGH THE GOVERNMENT
EASIER THAN THIS THING.
THIS THING'S GOING TO BE
PROBLEMATIC.
BUT STILL, IF AT&T GETS THROUGH,
JUDGE LEON SAYS THAT TYPE OF
STRUCTURE -- AT&T/TIME WARNER,
WHICH IS SIMILAR TO
COMCAST/NBCU, THAT THAT'S OKAY,
WELL, THAT'S GOING TO 'EM
WORLDEN BRIAN ROBERTS --
EMBOLDEN BRIAN ROBERTS.
THE OTHER ISSUE IS THERE ARE
OBVIOUSLY TAX IMPLICATIONS,
RIGHT?
LIZ: YOU PAID YOUR TAX ON AN
ALL-CASH BID.
>> I'VE BEEN TOLD DON'T -- IT
MIGHT NOT MATTER AS MUCH AS YOU
THINK BECAUSE HE COULD SORT OF
STRUCTURE THE BID IN A WAY THAT
LIMITS THE --
LIZ: LET'S PUT A DATE ON THIS.
JULY 10TH IS THE SHAREHOLDER
VOTE FOR BOTH DISS AND 31ST
IT'S GOING TO BE AT THE NEW YORK
HILTON, SO THIS IS RIGHT UP THE
STREET.
THIS IS GOING TO BE A BIG DEAL,
AND THAT'S WHERE SHAREHOLDERS
VOTE YEA OR NAY.
>> WELL, I MEAN, THAT DOESN'T --
I DON'T THINK THAT SUPERSEDES A
HOSTILE BID.
NOW, THIS THING COULD BE HERING
UP NEXT WEEK.
FOR ALL I KNOW THE FEDERAL
DISTRICT JUDGE THAT'S RULING ON
AT&T/TIME WARNER, WHICH THAT IS
KIND OF THE PRECEDENT THAT BRIAN
ROBERTS IS LOOKING AT THIS BID
SO HE CAN GET BIGGER, THAT
DECISION COULD COME NEXT WEEK.
I'M WONDERING, I'VE ASKED AROUND
IN OFFICIALLY ANYWAY BEFORE THAT
RULING --
LIZ: THEY ARE PREPARING A BID.
COMCAST --
>> YEAH, NO, THEY ARE.
LIZ: PROBABLY PUTTING THE FINAL
TOUCHES ON IT.
>> NO, I'M SAYING WOULD THEY DO
IT NEXT WEEK BEFORE THE MEETING
OR BEFORE THE JUDGE RULES IS THE
QUESTION I ASKED, AND THEY SAID
LIKELY NOT, BUT WHO WHO KNOWS.
MAYBE THEY FIGURE WE'VE GOT TO
GET THIS DONE, WE HAVE TO PUT
OUR FINGERPRINT DOWN ON THIS.
SO THIS LOVE TRIANGLE YOU CALLED
IT.
I CALLED IT SOMETHING IN FRENCH
BEFORE.
THIS IS HEATING UP.
LIZ: LOVE HANGOVER.
[LAUGHTER]
>> BY THE WAY, I HAVE NO --
LISTEN, WE SHOULD POINT OUT WE
WORK FOR 21ST CENTURY FOX NEWS,
FULL DISCLOSURE, THIS IS A GREAT
BUSINESS STORY.
AND, BY THE WAY, IT'S COMING ON
THE HEELS OF THE BIG MEDIA
RETREAT AT SUN VALLEY.
YOU KNOW, THE ONE I GET THROWN
OUT OF EVERY YEAR?
[LAUGHTER]
LIZ: I'D THROW HIM OUT TOO.
>> ALL THESE PLAYERS ARE GOING
TO BE THERE.
BRIAN ROBERTS IS GOING TO BE
THERE, I'M ASSUMING LOUGHLIN AND
RUPERT MORE GOBBING, BOB IGER
FROM ABCK DISNEY --
LIZ: CHARLIE'S GOING TO BE THERE
WITH HIS FANNY PACK AND A CAMERA
RUE CREW, AND HE'S GOING TO --
>> THEY LOVE ME.
THEY LOVE ME EVERYWHERE.