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The Fox And The Hound: 21st Century Held M&A Talks With Disney

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The Fox And The Hound: 21st Century Held M&A Talks With Disney
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Walt Disney Co (NYSE: DIS) has recently engaged in on-and-off talks to buy a majority of Twenty-First Century Fox Inc (NASDAQ: FOXA), CNBC reported Monday.

Through the deal, Disney would acquire Fox’s studio and TV production assets, which would bolster distribution capacity as it builds out an exclusive direct-to-consumer streaming service in competition with the likes of Netflix.com, Inc. (NASDAQ: NFLX).

The entertainment company already controls ABC and ESPN and would not add Fox’s sports and programming network to its propertiesk, according to CNBC. Fox News, Fox Business, broadcasts and local affiliates would also remain in the seller’s portfolio to mitigate potential antitrust concerns, the cable news channel said. 

The deal would reportedly include the transfer of Fox’s entertainment segments, such as FX, to Disney. 

Fox’s interest in a sale reportedly arises from scalability concerns that could only be alleviated by acquisition. A tighter portfolio of news and sports is believed more competitive and manageable than Fox’s presently diversified assets.

Terms of a deal are undisclosed and talks are not ongoing, according to CNBC. 

Fox spiked 6 percent and Disney 2 percent on the news. Netflix initially fell 1 percent, CBS Corporation (NYSE: CBS) popped 3 percent and Viacom, Inc. (NASDAQ: VIAB) 4 percent.

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