Disney close to landing mega-deal for Fox franchises
Disney may be just days away from buying a treasure trove of assets from Twenty-First Century Fox — including its storied 20th Century Fox film studio.
The Mouse House and Fox have been in on-and-off talks for weeks over the sale of assets valued at more than $60 billion — and with rival suitor Comcast dropping out of the competition on Monday, Disney appeared ready to pounce, according to reports.
Being sold to Disney in the stock deal would also be Fox’s TV studio, including cable stations FX and National Geographic, Fox’s 39 percent stake in European pay-TV service Sky and other assets.
Disney would also get Fox’s stake in Hulu — which would double its holding in the video streamer to 60 percent.
Fox would keep Fox News, its broadcast TV network and Fox Sports.
On news that Disney has appeared to outbid Comcast, shares of the California entertainment giant rose 2.5 percent, to $106.83. Fox shares gained 1.1 percent, to $33.66.
If the deal with Disney is consummated — and it has to be approved by the boards of both companies — Fox Chief Executive James Murdoch is expected to take a senior management position with Disney, according to reports. Murdoch would then be a possible successor to Disney Chairman and Chief Executive Bob Iger.
Disney and Fox declined to comment.
Fox shareholders will end up with about 25 percent of Disney, said Rosenblatt Securities.
Should a deal go through, Iger is expected to extend his contract, which currently runs through 2019.
Fox Co-Executive Chairmen Rupert Murdoch and his son, Lachlan Murdoch, wrote in an e-mail to staff last week: “We want to address the headlines about us possibly talking to other companies about a potential transaction. While we can’t comment on market speculation, we do want to address the impact we know this is having on all of you. Uncertainty always breeds unease. In every way, our focus is on our businesses and on the welfare of all our colleagues.”