21st Century Fox shares soar after report of sale talks with Disney

21st Century Fox shares soar after report of sale talks with Disney

21st Century Fox shares soar after report of sale talks with Disney

Now the rumor may actually not be that far off as it is reported Disney is in early talks to purchase FOX Studios, the home of the X-Men, Fantastic Four and Deadpool.

The two sides are not now talking, but had held talks in the last few weeks, CNBC reported, citing unidentified people familiar with the matter.

A Disney spokesman did not immediately respond to a request for comment while Fox declined to comment. 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. Fox is also reportedly hoping to concentrate its focus on news and sports, potentially selling off the greater movie and television elements to a company with a better handle on the rapidly changing face of entertainment media and how audiences consume it.

CNBC's sources said any potential deal between Fox and Disney wouldn't have Disney buying all of Fox. It would also have kept its broadcast network and the local broadcast stations it owns. It would not buy Fox's sports programming assets in the belief that combining them with ESPN could be seen as anti-competitive from an antitrust standpoint and it would not buy the Fox News or Business channel. Walt Disney World, Disneyland, Disney Cruise Line, Universal Orlando Resort and more - they can do it all, and at no extra cost to you! That £11.7bn ($15.41bn) deal has run afoul of regulators' concerns about media plurality in the United Kingdom and the Murdochs' commitment to broadcasting standards.

"I see lots of synergies for Disney". But 21st Century Fox wouldn't sell all of its company.

Fox has some advantages there next to Disney, as so much of their sports involves the broadcast network rather than cable, but the overall impact of sports rights fees and revenues would be under a bigger microscope under this structure.

It'd definitely be interesting.

Fox's shares jumped 9.9 percent to close at $27.45 on Nasdaq, and Disney shares climbed 2.0 percent to $100.64 on the New York Stock Exchange. Disney's shares were up 1.2 pct at $99.86 US.

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