Walt Disney is reported to be holding talks with the 21st Century Fox to acquire most of the Rupert Murdoch company business, including the Sky network. The potentially controversial deal can reshape the media landscape.
Fox shares have seen over 9% rise in the wake of the news while the Disney stocks also witnessed a 2% gain.
The talks have taken place over the last few weeks and there is no certainty they will lead to a deal. The two sides are not currently talking at this very moment, but given the on again, off again nature of the talks, they could be revisited, CNBC has reported.
Disney would not purchase all of Fox, according to people with knowledge of the talks. The company would not buy the Fox broadcast network as it will not be commercially viable to own two broadcast networks. Fox’s sports programming will also not be part of the expected deal. Disney would also not purchase Fox’s local broadcasting affiliates, according to people familiar with the negotiations.
In addition to the movie studio, TV production and international assets such as Star and Sky, Disney would also add entertainment networks such as FX and National Geographic.
The contemplated structure of the deal or the price that has been discussed is not disclosed as of now. Officials at Disney and Fox are not commenting on the negotiations and expected deal.