21st Century Fox resumes sale talks with Walt Disney
Sheetal Sukhija - Tuesday 5th December, 2017
Last month, talks between the two companies were believed to have ended
Now, reports stated that Fox has resumed talks with Walt Disney
The talks over a sale of ‘most’ of its business have resumed
WASHINGTON, U.S. - A month after talks of a possible sale of Rupert Murdoch's 21st Century Fox with Walt Disney were believed to have ended, reports now claim that similar talks have resumed.
According to reports, Fox has resumed talks with Walt Disney over a sale of "most" of its business.
Reports noted that negotiations are said to include Fox's movie and cable networks and international divisions, including Sky.
However, the rest of the group, which includes Fox News Channel, Fox broadcast network and its sports rights, are not believed to be up for sale.
Reports stated that Fox is currently in the process of trying to buy the rest of Sky that it does not already own. Currently, Fox holds a 39 percent stake in the satellite broadcaster, but is seeking full control.
However, regulators that are scrutinizing the deal worry that the acquisition would give a higher level of influence to media companies controlled by the Murdoch family within the U.K. media landscape.
Regulators are also concerned about 21st Century Fox's commitment to broadcasting standards.
According to Media analyst Claire Enders, founder of Enders Analysis, the reported interest of Disney in Fox was "very credible.”
Enders believes that for a "huge conglomerate" like Disney, a deal focused on consolidation would be "very sensible.”
Adding that it would allow it to save hundreds of millions of dollars though "combined efficiencies.”
However, she also noted that talks would not be able to progress significantly ahead of a critical auction of U.K. Premier League rights early next year since this would potentially affect Sky's valuation.
Meanwhile, analysts believe that a Disney deal is not expected to prevent Fox's pursuit of the rest of Sky's shares.
With the media industry facing an upheaval, as viewers turn increasingly towards online video, and away from subscriptions for pay-TV - Disney is believed to be aiming at combining its extensive entertainment offering with Fox's, in a bid to counter the growing threat from Amazon and Netflix.
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