Comcast's cash offer for Fox assets may have difficult tax implications, sources say
Disney's stock offer would allow Fox to spin off its assets tax free, while a cash offer from Comcast would result in a taxable spin, sources told CNBC's David Faber.
The telecommunications giant said Wednesday it is in "advanced stages of preparing" a "superior" all-cash offer for parts of Fox.
Disney agreed in December to acquire those assets, which include Fox's movie studios and a stake in Sky, for $52.4 billion in stock.
Comcast CMCSA 's efforts to outbid Walt Disney DIS for Twenty-First Century Fox FOXA assets may run into tax hurdles, sources told CNBC's David Faber .
The telecommunications giant said Wednesday it is in "advanced stages of preparing" a "superior" all-cash offer for parts of Fox. Disney agreed in December to acquire those assets, which include Fox's movie studios and a stake in Sky, for $52.4 billion in stock.
However, Disney's stock offer would allow Fox to spin off the assets tax free, while a cash offer from Comcast would result in a taxable spin, sources said.
A deal with Fox would boost Disney's efforts to dominate video streaming and compete with Netflix NFLX .
Shares of Comcast fell more than 2 percent in premarket trading, and Disney shares traded more than half a percent lower. Fox shares jumped more than 1 percent.
Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.
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