Mubasher: 21st Century Fox has been in negotiations to sell a majority stake to Walt Disney Co. so that it could focus more on news and sports, which it believes have a more competitive edge, informed sources told CNBC.
Talks have been ongoing over the past few weeks; however, no final decision or agreement has been made, the sources said.
“For Fox, the willingness to engage in sale talks with Disney stems from a growing belief among its senior management that scale in media is of immediate importance and there is not a path to gain that scale in entertainment through acquisition,” CNBC said.
21st Century Fox believes that focusing on news and sports would enable better and more effective competition in the marketplace.
The media scene has changed significantly over the past few years, as giants such as Facebook, Google and its mother company Alphabet, Amazon, and Netflix, taking over the arena and changing the way people view and consume media, as well as dominating the distribution of digital and video content.
“Being able to compete in that changing landscape, many people believe, requires scale that Disney has, but 21st Century Fox does not,” CNBC reported.
Disney would not purchase all of Fox, the sources stated, indicating that Disney would not need to own two broadcast networks. That is why it would not acquire Fox’s broadcast network.