Disney close to clinching $60bn deal with 21st Century Fox

Carla Harmon
December 15, 2017

A report from MoffattNathanson analyst Michael Nathanson estimates $2.5 billion in cost synergies for Disney and $1 billion in new deal amortization.

The deal between Disney and Fox could be unveiled as early as Thursday before trading opens in NY, one person said. Comcast and Disney were seen as the leading bidders, but Comcast dropped its bid on Monday, leaving Disney in the pole position.

The Murdoch family was said to favour a deal with Disney because it would rather be paid in the entertainment giant's shares than Comcast stock.

21st Century Fox Inc. will retain its real estate portfolio, including the storied 20th Century film and television studio lot in Los Angeles, when it sells a large chunk of assets to Walt Disney Co.

As well as the film studios and Sky stake, the assets being offloaded by Fox also include FX and National Geographic cable channels, 22 regional USA sports networks, Indian pay TV channel Star and the company's stake in the Hulu digital streaming platform in the US.

As well as its film studio, Disney also owns the ESPN sports network and cable channels.

Ms Bradley shifted Fox's proposed takeover of Sky to the Competition and Markets Authority (CMA) for a full inquiry earlier this year after a three-month probe by Ofcom.

Shares in Disney rose 0.5% in NY on Tuesday, valuing the company at $162bn, while 21st Century Fox added 1%, valuing it at $62.6bn.

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