Recently, there has been talks of Walt Disney Co. purchasing a number of assets from 21st Century Fox Inc. Reports are saying the acquisition talks have been on and off the past two weeks, with the two companies no longer speaking at the moment.
The Sports Business Journal shed light on the fact that for Disney, this could be very attractive as they would now possess another movie studio as well as powerful television production assets. The discussions have been centered around Fox giving up their entertainment networks like FX and National Geographic as well as international assets Star and Sky. Fox would also hang on to its’ local broadcasting affiliates and sports’ networks. There is no consideration in selling their sports’ networks because of anti-trust issues that could arise from Disney’s sports network ESPN.
CNBC reports that Fox believes “a more tightly focused group of properties around news and sports could compete more effectively in the current marketplace.” With the landscape of media geared more towards the social media giants Facebook, Twitter, and Instagram, many believe that to compete in this current landscape it requires “scale that a Disney has, but 21st Century Fox does not.”
The LA Times makes a good point in mentioning, “The proposed purchase would have made Disney a more formidable media conglomerate at a time when AT&T is trying to swallow Time Warner.” A purchase of more production assets will only help Disney as they are preparing their version of a media-subscription service to compete with Netflix.
The talks of an acquisition of this magnitude is relevant news during a time where the landscape of media is transforming daily.