Disney In Talks To Buy 20th Century Fox

Disney is in talks with 20^{th Century Fox to purchase a large chunk of the company's entertainment businesses according to people close to the discussion. This suggests that Disney is serious about bolstering its TV operations and that Rupert Murdoch is open to a surprising restructuring of his media empire.}

According to the Wall Street Journal, Disney reportedly approached Fox in recent weeks offering to buy its cable television networks such as FX and National Geographic as well as the 20^{th Century Fox Studio and its international distribution operations. The talks are currently on hold at the moment but given the on again, off again nature of the talks, they could be revisited.}

For Fox, the decision to engage in talks with their fellow media company stems from the belief that scale in media is of immediate importance. However, to gain this scale in entertainment requires not an acquisition but a more tightly focused group of properties around news and sports allowing it to compete more effectively in the current marketplace.

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The traditional media landscape has changed in recent years due to tech giants such as Facebook, Google, Amazon, and Netflix changing the way media is consumed and dominating the digital distribution of content. Being able to compete in this new landscape, many people believe, requires a scale that Disney has but 20^{th Century Fox does not.}

For Disney, the opportunity to control another major film studio as well as significant TV production assets as it readies its yet unnamed direct-to-consumer entertainment streaming offering is definitely attractive. Fox already has a significant exposure to international markets, such as the U.K., Germany, and Italy through its stake in Sky and its TV networks.

Should the deal push through, Fox will be able to direct its resources to its remaining media assets while Disney will not only get Fox's TV networks and film studio but also rights to many franchises particularly the "X-Men" franchise which will likely be taken under its Marvel wing.