>> Disney, sweetening its offer, Wednesday, to acquire the bulk of 21st Century Fox, offering $38 a share, about $10 higher than its first bid at the end of last year. The $71 billion-dollar offer from Disney surpassing a rival 65 billion all-cash proposal made by Comcast last week. The bidding wars come as both Disney and Comcast are battling for expansion in the era of online streaming services, says Reuters correspondent Carl O'Donald.
>> If you're Disney, by merging with Fox you're gonna get this suite of really coveted content. You should be able to negotiate better deals with cable providers. And Disney can roll out its own sort of competitors, if they were so inclined, to Netflix, to Hulu. In fact, they would gain control of Hulu, so they could take advantage of that.
For Comcast, it's a very similar play. They would gain control of Hulu. They would have the means to produce alternative types of content. Bundles that are more appealing to consumers sort of in the internet era and offset some of those declining cable revenues.>> Disney's revised offer could also be very attractive for billionaire Rupert Murdoch, who has owned Fox since its founding.
>> On Disney's current offer, half-stock, half-cash, Murdoch can take stock if he wants, and avoid paying higher taxes. There is also the opportunity, because he will be a shareholder in the company, to retain some influence over the company that he built.>> Fox said it will postpone its special shareholders' meeting to provide investors the opportunity to evaluate the higher bid.
Neither offer from Disney or Comcast includes the Fox News Channel. 21st Century Fox shares were up about 7% on Wednesday.