Walt Disney Co (NYSE:DIS) and Twenty-First Century Fox Inc Class A (NASDAQ:FOXA) are said to be near a deal after about a month of unverified reports that a transaction is near. The Walt Disney-Fox deal is reported to be valued at more than $60 billion.
Twenty-First Century Fox said to choose Disney over Comcast
CNBC and Bloomberg reported the news of the Walt Disney-Fox deal on Tuesday morning, both citing unnamed sources familiar with the negotiations. CNBC has been reporting that negotiations are underway between the two media and entertainment giants for weeks, although neither Walt Disney nor Twenty-First Century Fox has verified that negotiations are going on.
Over the last few weeks, CNBC has also been reporting that talks were underway between Twenty-First Century Fox and Comcast, its parent company. However, it clarified this morning when updating the status of the reported talks that Fox’s negotiations with Disney “have progressed more significantly.”
According to Bloomberg’s sources, Fox would rather sell its assets to Walt Disney “because it’s a better strategic fit and presents fewer regulatory hurdles.” The media outlet’s sources also reportedly said that Fox CEO James Murdoch could join Disney if a deal between the two firms can be reached. The Murdoch family
Details on the Walt Disney-Fox deal
CNBC said the Walt-Disney Fox deal could be announced as early as next week, while reports that the Murdoch wants to make a decision by the end of the year. The talks are said to include Fox’s regional sports networks, Star, A&E, movie studies, and Hulu and Sky stakes, leaving Fox’s sports programming, broadcast network, and news and business news divisions with Twenty-First Century Fox.
For each share they own, Fox shareholders will reportedly receive one share of the company that contains what’s left of Twenty-First Century Fox after the transaction with Disney closes. They will also reportedly get Walt Disney shares “in a fixed exchange ratio” after Fox’s movie and TV assets are sold to Disney. CNBC’s sources also reportedly said that an enterprise value of more than $60 billion has been attached to the assets under consideration in the Walt Disney-Fox deal.
After the news about a potential Walt Disney-Fox deal was reported this morning, Twenty-First Century Fox stock rose by approximately 2% to as high as $34.48. Walt Disney stock declined by about 3%, falling as low as $106.52.