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Transcript

00:00:00
>> A bidding war over Fox's media assets is sparking another possible fight, pitting media model Rupert Murdoch, against his own company share holders. Disney and Comcast are both interested in buying 21st century Fox's film and TV properties. The winner wouldn't just represent a massive new media empire, but have an impact on Rupert Murdoch's tax bill, says Reuters media correspondent, Jessica Toonkel.
00:00:24
>> So we know that Comcast is contemplating an all cash bid of upto $60 billion. Shareholders, many of them, like cash. Cash is reliable. You know what cash is. But for Rupert Murdoch and his family trust, it represents a big capital gains hit. So he might prefer a Disney stock deal over a Comcast cash bid, even if Comcast cash bid is higher.
00:00:46
>> The exact tax hit is hard to calculate, but tax experts say, it would be in the multi-billions of dollars, based on the Comcast offer currently on the table. But several Fox shareholders told Reuters, they would favor the Comcast bid, if it put more money into their pockets, and they could have the upper hand.
00:01:06
Though the Murdoch family trusts the largest shareholder with a 39% stake. Company by-laws mean the Murdoch's control just 17% of a voting shares, when it comes to the Disney deal, making it easier to out vote the family. There are some holdouts though, who want to see how rich the Comcast offer can get, which might also sway Murdoch.
00:01:27
>> So that's when it comes down to the numbers, right? If Comcast goes high enough to pay for the Murdoch's tax bill, then yeah, that would be a workaround. If they pay enough cash, then everyone will be happy, cuz Murdoch can go buy Disney stock with all the cash he has.
00:01:42
>> But, there are plenty of hurdles to clear first, including an actual offer, which Comcast says, they will only make of another mega merger, at&t, and TimeWarner, if allowed to proceed.