Disney is reportedly negotiating to purchase most of the assets currently held by 21st Century Fox, and as one might expect the money they’re talking about spending is more than chump change.
According to a report from Deadline, the assets could be valued at as much as $67 billion. To put that into perspective, Disney made huge waves in the industry with its purchases of Marvel and Lucasfilm, and those only cost the company $4 billion each. Of course, the size of those companies, despite their valuable intellectual properties, is nothing compared to the size of a corporation like 21st Century Fox.
A lot of focus has been placed on the deal including the 20th Century Fox movie studio since Disney wanting to get all of its Marvel characters film and television rights back home was reportedly one of the motivating factors in them negotiating with Fox. However, the entertainment side of the equation is not the largest in terms of monetary value. Fox’s movie and television studios, plus its cable networks, have an estimated combined value of about $13.3 billion, which is dwarfed by the $22.4 billion value of Fox’s regional sports networks.
Of course, this is all coming from outside speculation and analysis. Fox and Disney have both been quiet about the details of the negotiations so far, while actors Chris Evans and Ryan Reynolds have been making jokes about what the deal could mean for their starring roles as Captain America and Deadpool, respectively.
Rumors about Disney's interest in buying Fox first began circulating in early November, at a time when negotiations had stalled out. Reports soon followed that Disney and Fox had returned to the table again and that Fox was favoring Disney over other potential buyers.
21st Century Fox is reportedly looking to become a more news-focused company once its other assets have been divested. The decision is the result of the company's leadership coming to the realization that it is simply not large enough as media entity to compete with giants like Disney and the rapidly growing digital presences of Netflix and Amazon.
If talks go well, the deal could be announced as early as next week.