21st Century Fox and The Walt Disney Co. have been holding talks about having Disney acquire most of the company, according to CNBC, which cites sources who are familiar with the situation.
“Disney would not purchase all of Fox, according to people with knowledge of the talks,” CNBC reports. “Fox is said to believe that a more tightly focused group of properties around news and sports could compete more effectively.”
The two companies are reportedly not talking at this time, but talks could be restarted, the story reports. “The talks have taken place over the last few weeks and there is no certainty they will lead to a deal,” CNBC notes.
“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,” the report adds.
CNBC notes: “The media landscape has changed considerably in recent years with giants such as Facebook, Google (Alphabet), Amazon and Netflix changing the way people consume media and dominating the digital distribution of digital video content. Being able to compete in that changing landscape, many people believe, requires scale that a Disney has, but 21st Century Fox does not.”