Disney May Be in Talks to Buy 21st Century Fox

Disney May Be in Talks to Buy 21st Century Fox

According to CNBC, 20th Century Fox and Disney have been in discussion about the a deal that would see most of the former sold off to the latter. Walt Disney can't own two broadcast networks, so it wouldn't buy the Fox network. And a third view is that Fox isn't as concerned about what they're selling as who's buying it; there are only a few companies with the resources to pick up media properties on this scale, and less that would have much interest, with Disney perhaps at the top of that list. However, Fox shares are up more than 5 percent on the day on the potential Disney deal; Disney shares are up about 1 percent. It would also exclude Fox's sports channels to avoid regulatory scrutiny that would come on concerns that combining with ESPN is anti-competitive.

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Fox is said to believe that it does not have the scale to compete with organizations like Disney, Amazon, Netlfix, Facebook and Google, and that a group of properties more narrowly focused on news and sports could compete more effectively in today's marketplace.

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Faber also reported that Disney was not interested in acquiring the company's 17 owned-and-operated local Fox broadcasting affiliates. Both companies had no immediate comment when contacted by Bloomberg News. Disney already owns ABC, and therefore can not also own another broadcast network, due to FCC regulations. It's also a little frightening, as Disney-Fox would essentially create one Mega Hollywood studio conglomerate, which could make the modern movie going experience even more homogeneous than it already is. Instead, Disney would get the movie studio, the related worldwide assets, and TV production.

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Disney announced plans in September 2017 to remove its Marvel and Star Wars projects from Netflix as it readies its own streaming service in 2019. One of the parts FOX is looking to sell is the 20th Century FOX movie and TV production studio, which one presumes would include the rights to anything said studio controls, including the X-Men and Fantastic Four superhero teams. So it would definitely be interesting to see how a more-focused-on sports Fox would do, and how investors would react. James Cameron is now at the helm of filming four back-to-back Avatar sequels to the most successful movie of all-time, and already worked closely with Disney on the new attraction Pandora - The World of Avatar at Orlando's Disney World.

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