Disney Renews Interest In Fox Hunt

Walt Disney Co. has re-engaged in discussions with 21st Century Fox to purchase some of the media giant’s assets, and Comcast Corp. remains in the mix, with deal talks gaining momentum.

According to The Wall Street Journal, the talks center on the Twentieth Century Fox movie and TV studio, international assets such as Fox’s 39% holding in U.K. satellite TV provider Sky and India’s Star TV, along with some U.S. cable networks.

Fox News, the Fox broadcast network and sports network FS1 aren’t expected to be sold in any transaction.

Rupert Murdoch and his family, who hold 39% of 21st Century Fox’s voting shares, expect to make a decision by year’s end on whether to pursue a transaction, the people said.

Disney first reached out to 21st Century Fox about a possible deal several weeks ago, but the talks cooled after the two sides couldn’t agree on price, among other issues, people familiar with the matter have said.

Once news of those initial talks surfaced, other potential acquirers began emerging. Comcast, Sony Corp.’s entertainment unit, and Verizon Communications Inc., are among firms that have expressed various levels of interest, the people familiar with the situation say. The extent of discussions with Sony and Verizon is unclear. A top Verizon executive last week played down the need for the company to do a big content acquisition.

With the Twentieth Century Fox studio, they would also get a premier Hollywood content factory and strengthen their position as media consumption shifts to digital platforms.

A sale would mark a significant turn for 21st Century Fox, which has long been viewed as a potential buyer in the media industry, not a seller. Media companies across the board are considering new business models and strategic options as they confront a rapidly changing landscape, with consumers cutting the cable TV cord, big programming distributors flexing their muscles, and advertising revenue growth uncertain.