21st Century Fox has reportedly resumed talks with Walt Disney to sale most of its assets. The deal being discussed would include Fox’s movie and cable networks, as well as its international divisions like SKY in the UK. The talks were believed to have stopped last month, but it seems that Disney is now very interested in the possibility of moving forward. The huge media conglomerate would benefit greatly form the synergies that would come if Disney bought 21ts Century Fox. It would allow Disney to save hundreds of millions of dollars. However, there is still many hurdles that must be overcome for the deal to go through.
The merger of two of the biggest media production companies in the world may see a lot of push back from regulators. Just recently we saw the deal between ATT and Time Warner get shutdown due to anti-trust laws. Disney is also likely to wait until after the auction of the TV rights to the UK Premier League that will surely affect the valuation of SKY and other international assets of FOX. The takeover comes after the media industry has seen a shift with viewers increasingly turning towards online video, and moving away from subscriptions for cable. This can be seen as a way to deal with the rise of streaming services like Netflix and Hulu. Disney is making a big move with this deal, if it goes through it will surely surpass Comcast as the biggest media company in the world.
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