21st Century Fox in talks with Disney over potential mega sale

21st Century Fox in talks with Disney over potential mega sale

21st Century Fox in talks with Disney over potential mega sale

The merger scenario would see Fox selling most of its media assets to Disney, preserving a more focused company built on news and sports. Such an agreement would prevent Disney from violating FCC rules, which prohibit one company from owning more than one of the four major broadcast networks - Disney already owns ABC. One area in which the deal makes particular sense is in Fox's ownership of the Star Wars prequel trilogy (Episode I-III), which would then be brought to Disney with the rest of the franchise, should the potential deal clear all the hurdles it will undoubtedly face.

The move would give Disney control over two of the five highest-grossing film studios in the country.

Both 21st Century Fox and Walt Disney Company are scheduled to report quarterly results this week. Disney already owns ABC, and therefore can not also own another broadcast network, due to FCC regulations.

If a deal like this did happen and did receive regulatory approval, it could have some significant effects on sports. Instead, Disney would get the movie studio, the related global assets, and TV production.

Disney has been struggling with subscriber declines at ESPN, its biggest network, and is planning to launch direct-to-consumer video streaming services to reach younger audiences that have shunned traditional cable and satellite offerings. A Disney spokesperson did not immediately respond to a request for comment.

Fox has bid $14.5 billion to acquire the remaining 61 percent of Sky it does not own, but the acquisition has been delayed by British regulators. But 21st Century Fox wouldn't sell all of its company.

Popular 20th Century Fox releases this past year include "Alien: Covenant", "The Boss Baby", and the final Wolverine film "Logan"; the studio's upcoming projects include "Deadpool 2", "X-Men: Dark Phoenix", Queen biopic "Bohemian Rhapsody" and four "Avatar" sequels. So it would definitely be interesting to see how a more-focused-on sports Fox would do, and how investors would react. Disney climbed 1.9% to 100.55.

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