Disney re-engages talks with 21st Century Fox - report

Disney is reportedly back in talks to acquire most of Fox’s film and television assets, plus some from Comcast, the Wall Street Journal reported, citing sources familiar with the matter. The discussions are for 21st Century Fox movie and TV studio, international assets such as Fox’s 39 percent stake in UK satellite TV provider Sky and India’s Star TV, along with some US cable networks. Fox News, the Fox broadcast network and sports network FS1 aren’t expected to be sold in any transaction, the people said. Rupert Murdoch and his family, who hold 39 percent of 21st Century Fox’s voting shares, expect to make a decision by year’s end on whether to pursue a transaction, the people said. 

Disney first reached out to 21st Century Fox about a possible deal several weeks ago, but the parties could not agree on a price, among other issues, the sources said. Once news of those initial talks surfaced, other potential acquirers began emerging, including Comcast, Verizon Communications and Sony’s entertainment unit. The extent of discussions with Sony and Verizon is unclear. A top Verizon executive last week played down the need for the company to do a big content acquisition. Disney and Comcast are in active talks with 21st Century Fox. Nothing is finalised however and talks could still fall through. 

Also on the table in some of the discussions is Fox’s 30 percent stake in streaming service Hulu. Disney and Comcast each also own 30 percent of the company, so they could consolidate control by buying out Fox’s stake. Fox’s regional sports networks could also be sold off, sources said.