Disney No Longer Considering Buying FOX (For Now)

by Jamison Ashley
|
Bloomberg is now reporting that talks between 21st Century Fox and the Walt Disney Company over an acquisition of part of the former’s TV and movie holdings has ceased. CNBC’s original report referred to the talks as “on again, off again,” saying they could resume talks in the future. This unconfirmed talk of a partial buyout however seemingly stoked the stock market however, with Fox shares rising 8.9% and Disney 2.4%.

Walt Disney Co. held talks to buy 21st Century Fox Inc.’s movie studio and other assets, a person familiar with the matter said, a deal that would have given the entertainment giant control of another studio and TV networks across the world.

The two sides aren’t talking anymore, said the person, who asked not to be identified discussing private information. Fox shares surged as much as 8.9 percent, and Disney rose as much as 2.4 percent after CNBC first reported on the discussions. Both companies declined to comment.

Disney would have acquired cable networks such as FX and National Geographic, as well as assets outside the U.S. including the Star cable network in India and a stake in the Sky Plc satellite service in Europe, the person said. Disney wouldn’t acquire Fox’s broadcast network, Fox News, local broadcast stations or sports programming, the person said.

The rise of online competitors Netflix, YouTube and Facebook has slowed the growth of the pay-TV business, and forced the companies that rely on it to explore new ways of getting bigger. Pay-TV distributors Comcast Corp., AT&T Inc. and Charter Communications Inc. have already completed multibillion-dollar deals, giving them greater leverage in negotiations for channels from programmers like Fox and Disney.

“There are legitimate synergies in combining these companies, in Disney becoming bigger,” said Brian Wieser, an analyst at Pivotal Research Group LLC. “The bigger question is what is Fox thinking? This is so far removed from anything they’ve ever indicated before.”

Disney and Fox have contemplated major acquisitions in recent years. Disney looked to acquire Twitter Inc., the social media site, to distribute its video online. Fox tried to acquire Time Warner Inc., owner of HBO and Warner Bros., to bulk up its library of content and TV networks. Fox was foiled in that effort, and Time Warner later agreed to sell to AT&T, the mobile carrier.

Read the rest of the story here

Not sure if this means talks are TRULY dead, but the recent rumors and reports that preceded this story today had us hoping for an upcoming Silver Surfer movie from Marvel Studios…

Bleeding Fool

We cover geek news in regards to movies, television, gaming, politics, and comic books via commentary, news, videos, and ranting. While poking a bit of fun at some of the more highly revered comic book websites, we’ve decided it’s time to respond to either their boring ‘unbiased’ reporting with something a bit more nuanced and interesting, or respond to their decidedly progressive liberal politics with opinions from the libertarian and closer to the right side of the aisle. Follow us on Twitter @BleedingFool

JUST KEEPING THE LIGHTS ON