It was reported Monday that 21st Century FOX were in talks about selling to Disney. CNBC’s David Faber says now that the nature of the talks are currently “inactive” but are”on again off again.”
Even moreso, the Wall Street Journal wrote Monday that the estimated $20-$30 billion talks were only “prelminary” and there isn’t a settlement.
Needham & co. financial analyst Laura Martin told CBS that although it’s a smart idea, overpaying could be the issue. “Disney hates to overpay for assets. She added. “It’s a great strategic idea. When you merge two studios together, you create a tremendous amount of value. Disney has had a much better TV production unit than Fox.”
If the acquisition did occur, Disney would want to acquire Fox’s film and TV production and entertainment studios, but not Fox Broadcasting, Sports, news or business channels.
What used to the the “Big seven” media corporations has seen a huge shift in the past decade, (Netflix throwing a wrench in it as well) and if Disney does end up swallowing 21st Century, it will be one less “big” in the media race.
Viacom, AT&T and Amazon.com are some of those that are still in the race. (AT&T is in the process of acquiring Time Warner).
Since the news of the possible merge broke Monday, 21st Century Fox shares rose 10 percent and Disney shares rose 2 percent.
Shannon Toohey is Editor-In-Chief of FanFest.com. She graduated from Hofstra University in 2015 with a B.A. in Journalism from the Lawrence Herbert School of Communications. Shannon has been a proud member of the Fan Fest team since 2013. Tweet her in your prettiest bird voice: @shannontoo