Fox would continue to own its broadcast network and TV stations, cable news networks and sports businesses. Disney, which under USA rules could not own two broadcast networks, would not purchase all of Fox, CNBC reported, citing the same sources.
21st Century Fox has been in talks to sell most of itself to Disney, CNBC's David Faber reported on Monday. Presumably, it would take an insane amount of money to make it happen, but if Fox have already been willing to entertain sales talks, you have to feel that something is possible.
The buyout mainly concerns 20th Century Fox film properties, and would also remove the company as a Disney film competitor. And while the company's library of Lucasfilm and Marvel projects (along with Disney and Pixar films) is both extensive and appealing, the addition of Fox movie and television projects to the mix would certainly broaden the scope of what such a stand-alone streaming service (or services) might offer. With the shift to digital media, many believe that a corporation like Disney, rather than Fox, has the scale to compete in this new landscape. Disney would also not purchase Fox's local broadcasting affiliates, according to people familiar with the negotiations. In addition global assets, such as Star and BSkyB, he reported that Disney is seeking to add entertainment networks such as FX and Nat Geo.More news: Did Sessions mislead Congress about his interactions with Russian Federation ?
Disney is interested in solidifying its Hollywood and television positions and getting the Fox library of content to bolster its arsenal against Netflix and other rivals.
The two companies did not respond to an AFP request for comment. The Rupert Murdoch-owned Fox broadcast and Fox Sports will remain as they are. And more resources could perhaps be diverted to sports in a leaner company, allowing Fox to possibly pick up bigger rights packages.
21st Century Fox's assets include Fox Searchlight Pictures, Fox News, Sky, Endemol and National Geographic. Disney shares rose 1.6% on the news.