Walt Disney Co (NYSE:DIS) has plans underway to acquire a huge of a part of the 21st Century Fox as part of the strategy to transform the firm into an effective direct-to-consumer digital powerhouse to compete with Netflix. The negotiations are ongoing with the agreement being expected to close by end of next week.
Disney’s plan if successful would be one of the most daring shakeups to happen to the traditional media firm, the 21st Century Fox, which is on the brink of selling its largest assets worth about $68 billion to Disney.
Another firm known as the Murdochs would take up the remaining assets which include the Fox Broadcasting Co, Fox News, and Sport cable networks (FSI and FS2), to create a small TV firm. If the deal goes through successfully, Disney expects to take almost one year to work on the regulatory approvals considering that the firm buying another firm is legally prohibited from running the pending acquisition, even when the speculation is already out.
Therefore, even if it will take more than a year to fully comply with the regulatory requirements, Disney’s acquisition of Fox would make the two firms to stay apart until the requirements are duly met. If the deal closes, Disney would pick the best Fox assets that suit its current portfolio. Also, Disney plans to separate the broadcast Fox network from its parent supplier, Fox.
Other assets that Disney would obtain include the TV studio, Fox, movie studio, the 30% shares in Hulu, the FX and the National Geographic cable networks, and regional sports networks. Apart from the small top group at Disney and Fox, who are directly involved in the ongoing negotiations, the workers at the two firms seem to have no clue on what’s going on in their companies that has led to a lot of anxiety and speculations about the future.