And Disney will end up the winner, said Bibb, managing partner at Mediatech Capital Partners.
“Disney is the future,” Bibb said on “Power Lunch” Wednesday.
And he pointed out, “Disney needs it much more than Comcast does.”
“Comcast has the direct-to-consumer cable and wireless systems that are growing nicely,” Bibb said. “They have plenty of content.”
Bibb pointed out that Disney doesn’t have any direct-to-consumer facing content, although the company said it would launch a streaming channel in 2019 and is expanding its sports coverage on ESPN.
In December, Disney offered $28 a share for Fox. Last week, Comcast countered with an all-cash deal of $35 a share. On Wednesday, Disney raised its bid for Fox to $38 a share, or $71.3 billion.
At least one more round of bidding will occur, Bibb predicted, before “Disney walks away with the prize.”
“Comcast, if they won, they would be taking on an uncomfortable amount of debt,” Bibb said. “Disney’s offer is half cash and half stock. So the debt burden in a lot less.”
In his talks with investors, Bibb said many are apprehensive about Comcast taking on more debt.
“Comcast is stuck with old media, with cable,” he said. “And they’re tip-toeing into the wireless area. They haven’t really done much to exploit it. But they’ve got maybe 5 to 10 years more of the cable linear direct-to-consumer business. And then it evaporates. It’s all going to be off the internet.”
Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.
Source: Tech CNBC
Disney-Comcast bidding war for Fox will go up to a share before Disney wins: media expert