Fox Shareholder Files Lawsuit to Stop Disney Acquisition
Disney’s proposed deal to acquire the 21st Century Fox assets seemed to be a sure thing after recent news, but now a Fox shareholder has filed a lawsuit in regards to the merger possibly leading to major concerns and delays.
According to The Hollywood Reporter, Robert Weiss filed the suit on Friday in Delaware federal court, saying that what was filed with the Securities and Exchange Commission wasn’t an accurate estimation of future earning.
Weiss’ lawsuit states that a proxy statement filed on June 28 either omits, or completely misrepresents the future financial projections and the data underlying financial valuation analyses from Goldman Sachs and Centerview Partners. The suit also claims that the potential conflicts of interest for Goldman Sachs have not been fully disclosed, possibly misleading stakeholders and other parties.
The lawsuit specifically highlights the earnings for Hulu and the European broadcaster Sky in the years to come as both entities seem to be very profitable points of the business.
“In short, unless remedied, 21CF’s public stockholders will be forced to make a voting or appraisal decision on the Proposed Transaction without full disclosure of all material information concerning the Proposed Transaction being provided to them,” Weiss says in the complaint.
The overall $71.3 billion offer includes a combination of cash and stock, amounting to about $38 per share paid out. The Justice Department has already approved the deal, with the stipulation that Fox’s regional sports networks be sold separately to avoid them being rolled into ESPN.
Not only could this delay the purchase, but this suit could also give Comcast a door back in to the bidding war, as recent rumors were stating they were willing to put up more than $80 billion to acquire Fox if necessary.
What this means for entertainment, specifically Marvel, is still up in the air.