With all the talk around Fox and Disney recently, it’s no wonder the media world is watching on in anticipation. After reports that US telecom giant Comcast was looking to make its own move – new reports suggest that Fox is currently only considering Disney as a potential buyout.
Bloomburg is reporting that 21st Century Fox is looking to sell all of its television and movie assets (Outside of Fox News and Fox Sports) to Disney over Comcast. The reason cited for this comes from the fact that a sale to Comcast would require a lot of regulatory oversight and slow down the process significantly. Disney, on the other hand, would be a relatively smooth sale for the company – and potentially put James Murdoch (The current CEO of Fox) in a high position at Disney.
Whispers from around the industry suggest that a deal could be finalised with Disney as soon as next week.
For Comcast, the opportunity to take on board all those movie and television assets is likely an appealing one. The US Telecoms giant could easily spin its assets into a streaming platform – which Comcast could down sell to its customers. With streaming proving to be a huge area of growth within media, it’s no surprise to see so many companies fighting to get in to the market.
Disney, on the other hand, have a lot to gain any potential sale. Not only would it regain a number of hugely lucrative movie licenses, it would be able to make extensive use of Fox’s already existing movie and television properties. They’d also finally get the rights back to the original Star Wars movie – which currently reside with Fox. Because of the deal George Lucas struck with the company back in the 1980’s, Disney did not receive the distribution rights to the original Star Wars movie in its purchase of Lucasfilm.
Our Take: All signs seem to point to an imminent sale. Don’t be surprised if this buyout reaches a swift conclusion by the end of 2017.