In its review, Fox will need to decide whether Comcast’s richer, all-cash offer is usually enough to offset the antitrust risk in addition to also potentially higher tax liabilities for some of its shareholders, analysts said.
A U.S. court’s recent approval of AT&T’s merger with Time Warner raised the likelihood that will Comcast’s similar proposed deal with Fox would certainly get the green light through regulators, they said.
However, there are still concerns that will some aspects of the proposed deal could complicate an antitrust review, they added.
Craig Moffett, an analyst at Moffett Nathanson, said that will the Justice Department never addressed the question of whether internet providers such as Comcast could give an advantage to its own content at the expense of competitors.
For example, Comcast could give its internet subscribers easier or faster access to content through Hulu, which that will would certainly gain control over by buying Fox, than that will of various other media streaming services, the analysts said.
If an all-cash bid does eventually beat a stock offer, that will could have a bigger tax hit on Rupert Murdoch, Fox’s largest shareholder, who controls 17 percent of the company’s voting shares along with his family.
Reuters previously reported before the details of Comcast’s offer were made public that will the financial impact on Murdoch would certainly be big enough for him to prefer an all-stock transaction, which would certainly be nontaxable for all Fox shareholders.
that will potentially puts Murdoch, who remains the most powerful voice inside the company, at odds with some Fox shareholders who would certainly be open to abandoning the Disney deal if Comcast’s cash offer was high enough.
Disclosure: Comcast is usually the owner of NBCUniversal, parent company of CNBC in addition to also CNBC.com. Comcast is usually also a co-owner of Hulu.