>> Comcast changing course on Thursday, announcing it will drop its bid for 21st Century Fox assets, and will now devote its efforts to acquiring Europe's Sky TV. Comcast had been in a bidding war with Disney over Fox's assets, Comcast offered $66 billion in cash for the assets, but last month Disney raised it's bid to $71 billion in cash and stock.
Reuters correspondent Carl O' Donnel has been covering the fight for Fox.>> The main reason that they dropped their bid is there are really two parts to it. So first, Comcast attempted to introlope into Disney's existing deal with Fox. Disney very quickly came back with a higher offer, 71 billion.
And Comcast has limited balance sheet capacity, so it wasn't clear how much high they'd want to go. At the same time, they were embroiled in a second bidding war with Fox over Sky News in the UK, they had just put $34 billion on the table over there. So it became a question of, could they really afford to buy both of these assets?
I mean we're talking about a check upwards of a hundred billion dollars and clearly, their call was no.>> The fight over the UK-based TV group is part of a bigger battle being waged in the entertainment industry, with the world's media giants throwing around tens of billions of dollars on deals to be able to compete with Netflix and Amazon.
>> Clearly, they really believe in this thesis that they should own media content producers in order to compete in this new environment. A big competitor of theirs, AT&T, just closed a deal with TimeWarner. So Comcast is presumably not going to abandon the idea that this is something they should be doing.
So it'll remain to be seen who Comcast, or one of it's competitors, chooses to target.>> Shares of Comcast jumped more than 3% on the news, while shares of Fox and Sky are both down roughly 2%.