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Politically Correct Media Giant Disney Set To Devour Iconic 21st Century Fox #o4anews #Hollywood #Fox

Mr Americana, Overpasses News Desk
November 7th, 2017

The media giant Disney is set to devour another competitor, and Wall Street is showing its support.

With rampant speculation of Disney buying 21st Century Fox, stock prices have seen a significant surge, and proponents love the idea of a media industry consolidation to compete with Netflix.

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CNBC reported Monday that 21st Century Fox has been holding talks to sell most of the company to Disney, leaving behind a media company tightly focused on news and sports, according to people familiar with the situation.

While there are no talks currently underway, the negotiations have gone this way from the beginning, with pauses for both sides to consider the current offer. Sources say the talks are likely to be reconvened in the near future.

Shares of 21st Century Fox rose 10 percent Monday following the CNBC report, while Disney shares traded up 2 percent. The gains continued on Tuesday with 21st Century Fox up 3.5 percent mid-morning and Disney shares up another 2 percent.

“By combining the library assets and production spend of Disney and Fox, [the] pro forma firm apt to more effectively compete with emerging OTT platforms like Netflix and Amazon,” Citi Research analyst Jason Bazinet wrote in a note to clients Monday entitled “Disney + Fox Makes Sense.”

The “pro forma firm would allow Disney to rapidly achieve direct-to-consumer scale … Transaction [is] likely to help Disney’s multiple as it accelerates direct-to-consumer roll-out.”

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