Disney is close to buying a bunch of assets from 21st Century Fox, according to CNBC.
Such a deal could mean Disney ends up owning 30%-40% of the domestic box office, and 60% of Hulu.
The potential deal could likely face scrutiny from the DOJ.
On Tuesday, CNBC reported that Disney was close to a deal to buy large chunks of 21st Century Fox. Such a deal could lead to quite a concentration of power in media.
CNBC reported that Disney could pick up “Fox’s Nat Geo, Star, regional sports networks, movie studios and stakes in Sky and Hulu, among other properties.” Disney would leave Fox’s news, broadcast network, and sports intact (except the regional sports networks).
This would be a mammoth deal for media, and could set Disney up for a coming war with Netflix (as my colleague Mike Shields and I looked at yesterday). The competition with tech is key, as it’s likely the argument Disney would make to the DOJ. Disney would probably say that the DOJ should allow the deal to go through because Disney needs the new assets to stand against the vanguard of Silicon Valley giants invading Hollywood, from Netflix to Amazon to Facebook to Apple. It’s …read more
Source:: Businessinsider – Tech