Is a Disney – Fox deal on the cards? Is Walt Disney about to buy Fox? Some reports are suggesting that Walt Disney is about to purchase the entertainment assets of 21st Century Fox for around $60 billion. This would involve Disney purchasing the 21st Century Fox film studio along with the Star and Sky satellite broadcasting service of Asia, Europe and the UK.
Comcast Drops Out Making it a Disney – Fox Deal
NBC owner, Comcast, was also said to be involved, although its interest in the deal waned on Monday. It then dropped out of the deal, leaving it between Disney and Fox. It seems like the Murdoch family would rather be paid in Disney shares than in Comcast stock. The final costs of the deal have yet to be revealed.
Another factor in Disney’s favor is that there would be fewer issues with US regulations where an American company like Disney involved. It is expected, however, that this will not be a simple wave through the deal.
What About Sky?
Another issue is that Fox owns just 39% of Sky, so how about its bid to purchase the remaining 61%? This deal is already being scrutinized by the UK Competition and Marketing Authority. The provisional findings of its investigations are due for publication in January 2018 so nothing will be finalized soon!
There is also a possibility that Walt Disney may not proceed with the takeover. It may be satisfied with purchasing the 39% stake of Sky from Fox. Much depends on Disney’s reason for purchasing Fox. Is it to get its hands on Sky, or is it to take over 20th Century Fox?
Murdoch to Retain Fox News and Fox Sports
Fox is selling a number of its main assets, including the FX and National Geographic cable channels, its share of the US streaming platform, Hulu, and also 22 regional sports networks. This would significantly expand the movie and TV library of Disney, including Avatar and Deadpool on the big screen, and Modern Family and The Simpsons on TV. It would not involve Fox News or Fox Sports. Murdoch would retain these services.
Disney – Fox Deal Increases Fox and Sky Share Prices
Disney also owns the sports network ESPN and some sports cable network which are not included in the deal. Disney shares rose 0.5% in New York Tuesday when the news broke, and the Fox interest increased Disney’s value by 0.5% to $162 billion. Fox shares increased 1% to value the company at $62.62 billion.