Here we go, ladies and gents. We’ve hit another speed bump in the road toward Disney acquiring most of 21st Century Fox’s assets, which is a deal that’s been in the trades for the past six months or so. More recently, it was all but confirmed that Disney’s latest counterbid against Comcast would be the one Fox took, but we know this wouldn’t go down without a fight, right (at least I’d personally hoped)?
This lawsuit comes from Robert Weiss, and while I’m happy to see there is some resistance to merging two gigantic companies, it doesn’t sound like Weiss and co. are acting with complete altruism here, and seems to be working — as one would expect — in the best interests of the shareholders.
The suit reportedly alleges that there were several financial projections that were not filed with the Security and Exchange Commission. Basically, the proxy statement filed in late June ultimately misrepresents Fox’s financial projections. The companies who lacked projections or forecasts include Hulu and Sky. Furthermore, the financial valuation from Goldman Sachs is being questioned, as there is a potential conflict of interest that hasn’t been “adequately disclosed.”
All in all, it sounds like Weiss is making the right decision to ensure shareholders have ALL the information in front of them before a decision is ultimately reached.
What do you think of this new lawsuit? Sound off down below!
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