It will go through today and many are already talking about the "deal of the century". Most of the assets of the XNUMXst Century Fox, includinga Sky, will switch to Walt Disney for 75 billion dollars, including debts. The announcement will come today, before the opening of trading on Wall Street.
At the end of the operation Rupert Murdoch, which sells one of the most valuable pieces in its portfolio, will become a shareholder of the entertainment giant with a 5% stake. Fox shares lost 3,96% yesterday, while Walt Disney closed with a gain of 0,17%.
According to the Wall Street Journal (which is part of NewsCorp, another Murdoch subsidiary), Disney would be willing to offer up to $29 per share for Fox assets that include the Twentieth Century Fox film studio (which owns films such as “Avatar” and “X-Men”), cable networks, the stake in video streaming service Hulu and international assets including India's Star and Britain's Sky of which Murdoch has repeatedly tried to gain total control (move hampered by the British authorities).
Fox's remaining assets would be valued at between $11 and $12 a share, not far from the $10 per stock estimated by CNBC. Furthermore, according to the WSJ, Disney would take on Fox's debt. The structure of the agreement would follow the one used by Disney for the acquisitions of Pixar, Marvel Studios and Lucasfilm. And if things continue as they have in the past, Murdoch should post hefty capital gains.
The operation would be significant for both groups involved. Disney could continue its transformation with the intention of sharpening its weapons against Netflix and Amazon. Murdoch would return to his first love, information, with channels like Fox News and Fox Sports 1.
What antitrust hurdles such a transaction will encounter remains to be seen. US Justice has recently blocked the wedding between AT&T and Time Warner, groups intending to take the case to court.
