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21st Century Fox

Disney and Fox are closing in on deal, could be announced next week: Sources

Fox would sell movie and television production assets and keep its news, sports and broadcast network

PUBLISHED : Wednesday, 06 December, 2017, 11:28am
UPDATED : Wednesday, 06 December, 2017, 11:44am

By David Faber

Disney and Twenty-First Century Fox are closing in on a deal, and it could come as soon as next week, according to sources familiar with the matter.

CNBC has been reporting that Disney has held talks with the Rupert Murdoch-controlled media company to acquire its studio and television production assets, leaving Fox with its news and sports assets. Fox is also talking with CNBC parent company Comcast, but the talks with Disney have progressed more significantly.

The deal contemplates the sale of Fox’s Nat Geo, Star, regional sports networks, movie studios and stakes in Sky and Hulu, among other properties. What would remain at Fox includes its news and business news divisions, broadcast network and Fox sports.

The enterprise value of the Fox assets in the Disney deal is seen as above US$60 billion, according to sources. Current Fox shareholders would get one share of the Fox company that remains after the movie and television assets are sold plus shares of Disney in a fixed exchange ratio.

Shares of Twenty-First Century Fox rose 3.2 per cent, while shares of Disney fell 2.1 per cent Tuesday. Shares of Comcast fell 1.2 per cent.

Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.

Read the original article at CNBC

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