Fox stockholders would receive 27.45% of a Disney share for every Fox share they own.
The improved offer came as 21st Century Fox board was set to decide whether to back Comcast's bid for assets that include Fox's film and television studios and worldwide businesses.
Fox CEO Rupert Murdoch said the company "firmly believes" that the combination with Disney "will create one of the greatest, most innovative companies in the world".
If you're anxious about not being able to see the X-Men team up with the Avengers, an analyst from B. Riley recently discussed the probability of Disney obtaining the rights to the Marvel characters even if Comcast winds up purchasing 21st Century Fox.
The tussle follows AT&T Inc.'s victory over the U.S. Justice Department in its antitrust battle to take over Time Warner Inc.
This makes life hard for Comcast, which is already borrowing extravagantly and would become one of the most indebted companies in the world if it bought Fox.
As announced in the original acquisition agreement, the businesses to be acquired by Disney include 21st Century Fox's film production businesses, including Twentieth Century Fox, Fox Searchlight Pictures and Fox 2000 Pictures; Fox's television creative units, Twentieth Century Fox Television, FX Productions and Fox21; FX Networks; National Geographic Partners; Fox Sports Regional Networks; Fox Networks Group International; Star India; and Fox's interests in Hulu, Sky plc, and Tata Sky.
The tie-up "is an extremely compelling proposition for consumers that will allow us to create even more appealing high quality content, expand our direct to consumer offerings, an global presence and deliver more exciting and personalized entertainment experiences to meet the growing demands of consumers worldwide", Iger told a conference call. "There has just been not only a tremendous amount of development in that space, but clearly the consumer is voting-loudly".
"Comcast would have to offer a ton more cash to even come close to matching when figuring Disney valuation and taxes", said Ross Gerber? of the investment firm Gerber Kawasaki.
Both Disney and Comcast could use it to expand globally. "I don't think Bob Iger is walking away".
If Disney prevails, "Avatar" and other movies from Fox's studios would help beef up Disney's upcoming streaming service.