Comcast is giving up on its pursuit to buy Twenty-First Century Fox’s film and television assets, clearing the path for competing bidder Walt Disney.

The cable giant said Thursday that it will instead focus on its bid for European pay-TV group Sky.

Shares of Comcast were up 3 percent in midday trading, while Fox fell 1.3 percent. Shares of Walt Disney rose 2.1 percent.

“Comcast does not intend to pursue further the acquisition of the Twenty-First Century Fox assets and instead will focus on our recommended offer for Sky,” the company said.

“From the very outset, Comcast has looked to be wrong-footed in its quixotic pursuit of Fox,” said analyst Craig Moffet of MoffetNathanson, who called Comcast’s move “welcome news.”

Disney fended off Comcast’s $66 billion all-cash challenge to its deal for the Fox assets last month by upping its offer to $71 billion in cash and stock. Time was running out for Comcast to come back with a new offer, with Fox shareholders scheduled to vote on the Disney deal on July 27.

The cable operator, which is looking to build its business internationally, will now set its sights on the $34 billion offer to acquire 61 percent of Sky. Fox, which owns 39 percent of Sky, has been also seeking to acquire the majority stake. In pursuing Fox, Disney Chairman and Chief Executive Officer Robert Iger has called Sky a “crown jewel” of Fox’s assets.

The battle for Sky is part of a bigger war being waged in the entertainment industry in order to take on titans such as Netflix and Amazon.

As part of the deal, Disney will scoop up a 60 percent stake in streaming company Hulu, of which Comcast owns 30 percent. Although media onlookers have contemplated a horse trade in which Comcast gives up Hulu for Sky, BTIG analyst Rich Greenfield isn’t buying it.

“Comcast hurt Disney already by making them pay more for Fox. Why would Disney allow them to have Sky?” he said. “If I’m Disney, I’ve got Comcast against the ropes and I’m delivering the knockout punch.”