Disney raises bid to $71.3B to acquire Fox

By Ovunc Kutlu

NEW YORK

The Walt Disney Company announced Wednesday it reached an agreement to buy 21st Century Fox for $71.3 billion.

Disney said in a statement it signed an amended acquisition agreement with Fox for $38 per share in cash and stock.

Fox shareholders can choose to receive $38 in cash for each of their Fox stock, or select to own shares of Disney, according to the statement.

Disney offered $28 for Fox shares in a deal worth $52.4 billion in December and said it could sweeten the deal if there was a rival offer.

That offer came last week when the world's biggest cable TV company, Comcast, offered $65 billion for Fox.

Fox said in a statement Wednesday that Disney's agreement offers "flexibility" and it is "superior" compared to Comcast's proposal.

Disney shares rose 1.3 percent at the opening bell Wednesday of the stock exchange. Shares of Fox jumped 6.1 percent.

The Justice Department still has to approve the agreement amid competition and anti-trust laws.

A federal judge struck down the Justice Department’s attempt to block AT&T acquisition of Time Warner last week. The $85.4 billion merger closed two days later.