According to CNBC, Fox Entertainment Group which is owned by 21st century fox; has been in talks to sell most of the company to The Walt Disney Co.
No deal has been reached and the talks are not currently ongoing, CNBC reported, citing people familiar with the matter. The WSJ reported Monday that talks were no longer occurring.
However, it is reported that the discussions could resume at any time.
Moreover, according to CNBC; any potential deal would leave Fox with a smaller set of news and sports properties, including Fox News, Fox Sports and Fox Business.
A deal would “bolster Disney’s dominance in Hollywood,” the Wall Street Journal reported.
Disney is planning to come up with a strategy to compete with providers like Netflix, and Fox assets could be used as additional support for content.
21st Century Fox is the fourth-largest media conglomerate in the world, behind Comcast, Time Warner and Disney. While it deals primarily in film and television, Disney’s portfolio is more diverse, including live-action film production, television, theme parks, theater, radio, music, publishing and online media.
Since the news of the talks broke, shares of 21st Century Fox shot up 6 percent. Disney rose 1 percent.