Traditional entertainment heavy weights are jostling for scale and content as they fend off the burgeoning entertainment offerings of what used to be mostly distribution platforms, including Facebook and Google, as well as streaming powerhouses Netflix and Amazon. It also could extend Disney's reach into global markets.
Citing unnamed sources familiar with the negotiations, CNBC reports that Fox and Disney have been holding talks about a deal, although the two companies are no longer negotiating. Fox, as well as Sony and other studios, bought up these rights granting 20th Century Fox the ability to make movies about Wolverine and Deadpool as well as other members of the X-Men family.
Fox and Sky both declined to 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.More news: Chelsea technical director Michael Emenalo leaves post after 10 years
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Disney was reportedly interested in buying Fox assets including its studio division, partial ownership of the United Kingdom telecoms company Sky, and networks such as National Geographic and FX. "It's a no-brainer", Pivotal Research analyst Brian Wieser said."The confusion is what it means for Fox".
Odey's opposition to the 11.7 billion-pound ($15.4 billion) takeover comes after CNBC reported that Murdoch's Fox had recently held talks about selling some assets to Disney. Disney's India business is very small comparatively. Chief Executive Bob Iger has said he plans to retire from Disney in July 2019, and the company is searching for a successor.
Fox had previously sought to avoid a CMA investigation by promising it would allow editorial independence at Sky News and that it would keep investing in the channel for at least five years should its deal to take control of Sky be approved. Fox said in August that it expects to see high single-digit domestic affiliate fee growth every quarter in fiscal 2018.
Whether the deal goes through or not remains to be seen, however analysts are now suggesting that because of Disney's surging stock price - fuelled by all these rumours - means that a deal may be too lucrative for Fox to give up. Hulu also is partially owned by Comcast Corp and Time Warner Inc.