Published on December 13th, 2017 | by Dave Martin0
Report: Disney buyout of Fox assets in the cards for Thursday
The Walt Disney Company will buy the majority of studio and television production assets from 21st Century Fox with the agreement to be officially announced on Thursday, sources familiar with the deal have told CNBC.
Fox will reportedly sell movie and television production assets and keep its news, sports and broadcast networks. The enterprise value of the Fox assets in the Disney deal is expected to be more than $60 billion, but that exact amount is still not firm.
Comcast reportedly dropped out of the bidding for the majority of Fox assets on Monday.
What the deal means for consumers
For consumers, the sale will mean a number of acquisitions that could mean increased distribution of tv shows and movies through standalone services or partner deals. The possibilities could be many, but Disney is far from making any announcements right now.
Disney will acquire a majority stake in the streaming service, Hulu, fully acquire cable networks National Geographic and FX as well as the 21st Century Fox movie studio. Most importantly, the deal includes all of the past, present, and future content that has been produced by those services, channels, and studio.
With the purchase of various new content from Fox, Disney will be looking to use a lot of its content as part of its previously announced Disney streaming service. The unnamed service is expected to go live sometime in the Fall of 2019.
Disney CEO Bob Iger announced in November the service would be competitively priced against Netflix and will use Disney, Pixar, Marvel and Star Wars content, but that everything has to adhere to Disney’s G-rated standards.
“We’re also planning to produce a number of original series for the new service,” he commented. “We’re already developing a Star Wars live-action series, a series based on our popular Pixar Monsters franchise, a High School Musical series and a series for Marvel television along with a rich array of other content including new movies from our Disney Channel creative team as well as a variety of short-form films and features from across our company.”