Analyst Likes Possible Deal Between Disney and Fox

Adjust Comment Print

They "are not now talking at this very moment" but negotiations "could be revisited" according to Variety. The deals with Fox were signed long before Disney bought Marvel Entertainment in 2009.

Executives reportedly believe that Fox could compete more effectively if it consisted of "a more tightly focused group of properties around news and sports". Right off the bat, you could expect Fox's X-Men (including Deadpool and Wolverine) and Fantastic Four properties to be properly incorporated into Disney's Marvel Studios, helping them get one step closer to bringing all their wayward comic book assets back under one roof.

Twenty-First Century Fox has a total valuation of $48 billion United States, but the assets it would be buying are valued at about half that, Needham analyst Laura Martin told the network. Both companies aren't in talks but could resume them, according to the report.

If a deal like this did happen and did receive regulatory approval, it could have some significant effects on sports. At this time it is unsure if they are looking at selling off cable networks like FX but it is reported that FOX would keep its Fox Broadcasting Co and ownership of their FOX local affiliates.

The report regarding the deal indicates that Disney is avoiding the Fox Sports and Fox News assets, as well as the Fox broadcast network, in order to stay on the right side of antitrust laws.

Fox declined to comment on the reports.

Fox stock trading was halted when the news first broke. Disney's shares were up 1.2 pct at $99.86 US. But 21st Century Fox wouldn't sell all of its company. Fox's recent hits have included The Planet of the Apes and X-Men franchises while Disney controls Pixar and the Star Wars series.

Fox's shares rose 5.8 per cent to $26.40 United States in afternoon trading, after being halted in the morning when the report came out.