According to new reports, Walt Disney is likely to enter a whopping $60 bn deal with 21st Century Fox in order to acquire the latter’s entertainment assets.
Fox announced its decision to sell certain entertainment related assets last month. The company claimed that it was looking to expand its interests in news alone, and was selling off its other subsidiaries to concentrate on this interest.
The announcement unleashed a frenzy of action in the business world with companies jumping at the opportunity to acquire some of the top assets in the entertainment world.
Acquiring Fox’s assets would also mean that the winning company would be able to expand its reach in other parts of the globe such as the UK, Europe, and Asia.
After few weeks of intense bidding, the financial war trickled down to two companies, Comcast and Walt Disney.
However, in a rather surprising turn of events, Comcast, a telecommunication company, released a statement this week announcing its decision to withdraw from the bidding war. As such, Disney has become the last company left standing.
Rumors have long stated that Fox has favored Disney’s bid above all others, and some claim this is as the real reason behind Comcast’s sudden withdrawal.
Sources now believe that Fox and Disney are on the “glide path” and are likely to make an announcement by this Thursday.
The sale, while steep at $60 bn, could prove to be Disney’s entry into both the European and Asian markets.
Fox’s subsidiary Sky will ascertain that Disney will have some prime time on European paid television while Fox’s Star network will give it an opening into the Indian market.
As such, the deal is likely to have a huge impact on Disney’s presence at a global level and is certain to be worth every cent.