As we have been reporting, Disney and Fox are in negotiations for Disney to acquire 21st Century Fox’s studio entertainment assets as well as a 60% ownership in Hulu.
We have now learned according to a CNBC report that a mega deal between Disney and Fox will be announced on Thursday.
The $60 billion deal gives Disney key entertainment and sports assets from 21st Century Fox, including its film and TV studio. The report follows a Monday announcement that Comcast has opted out of its pursuit for Fox.
According to the report, Fox retains Fox News, the Fox broadcast network, and Fox Sports 1. More importantly for Rupert Murdoch and Fox, they should emerge from the deal flush with cash, debt free and with a clear path to privatize the company.
For Disney, most analysts appear to agree that it makes sense, some even going so far as to say it will be a “Home Run”. GBH Insights, for example, believes Disney acquiring Fox’s movie and television assets is the “right move at the right time.”
“We view this as a home run deal for Disney and while its an aggressive acquisition with a high price tag, in our opinion this is the right move at the right time as the marriage of these assets creates a much more formidable Disney on both the content and streaming front for the coming years.”– Daniel Ives, GBH Insights
The blockbuster deal is expected to dramatically reshape the entertainment business, eliminating one of the six major studios and giving Disney a formidable library of content assets of shows and movies as well as majority controlling interest in Hulu – all seen as vital in its efforts to launch a streaming competitor to Netflix.