Disney In Talks to Buy Most of 21st Century Fox

Nov 07, 2017, 00:30
Disney In Talks to Buy Most of 21st Century Fox

Citing unnamed sources familiar with the negotiations, CNBC reports that Fox and Disney have been holding talks about a deal, although the two companies are no longer negotiating.

The discussions have taken place over the last few weeks, CNBC reported, but there is no guarantee that they will result in a deal. With Fox's entertainment assets, Disney C.E.O. Besides the movie studio, TV production, and assets like Star and Sky, Disney would gain entertainment networks like National Geographic and FX.

The buyout mainly concerns 20th Century Fox film properties, and would also remove the company as a Disney film competitor.

Fox News, which has recently been tarnished by a series of sexual harassment scandals, would not be included as part of any deal, according to Faber. American companies aren't allowed to own two broadcast networks, and buying Fox Sports would raise antitrust questions when Disney already has ESPN under its belt. Apple, which also reportedly eyed the company, has always been seen as a potential buyer for Disney.

If a deal like this did happen and did receive regulatory approval, it could have some significant effects on sports.

Fox declined to comment on the reports.

In addition to the movie studio, TV production and worldwide assets such as Star and B Sky B, Disney would take entertainment network FX and National Geographic, the report added.

Now the rumor may actually not be that far off as it is reported Disney is in early talks to purchase FOX Studios, the home of the X-Men, Fantastic Four and Deadpool.

There's also the question of what it would mean for Fox to be focused even more on news and sports. Currently, Disney owns the Marvel, Pixar, and Star Wars catalogs. But 21st Century Fox wouldn't sell all of its company.

Shares of Twenty-First Century Fox rose some 7 percent to $26.80 in afternoon trade while Disney was up almost 2 percent to $100.30.