Castle at Disney

Plans to sell much of 21st Century Fox to the Walt Disney Co. have been, at least temporarily, taken off the burner. If rekindled, the plan could result in a historic agreement between the two media giants.
According to the Huffington Post online newspaper, negotiations have been underway for some weeks, with neither side providing any details about their current status. The discussion alone has caused a rise of nearly 10 percent in the value of Fox stocks and a slight rise for Disney, which is the largest media conglomerate in the world.
In accordance with the sale, Fox would retain its broadcast network, including the company’s news and business channels, and its sports programming. Fox would also be able to keep its affiliate channels. Senior management personnel have expressed the belief that the company could not achieve its desired goals through the acquisition of other companies. Instead, Fox hopes to focus on news and sports programming in order to remain competitive within the industry.
The plan would give Disney a chance to assume control of an another motion picture studio and more television production facilities in preparation for its creation of an entertainment streaming system. Additionally, it would give Disney greater exposure to the international market when considering that Fox currently owns some 40 percent of Sky TV, which serves a number of European countries. Further to its streaming plan, Disney has announced that it will soon withdraw all of its movies from Netflix, the streaming system with more than 100 million subscribers around the world. Disney will have two streaming networks, one for sports and the other to show its movies. Disney could also add to its system such networks as the National Geographic channel, which is partly owned by Fox.
The industry has undergone major changes since the rise of such media outlets as Amazon, Google and Netflix, which have led to a transformation in the way consumers receive both entertainment and information. Some observers believe that Disney would have a better chance than Fox of thriving in such a competitive environment. The exact manner by which the Disney-Fox agreement could be implemented, the cost of the plan and how such a transfer would affect either company’s tax liabilities have not been revealed.
Disney was created in 1923 by famed brothers Walt and Roy, and would soon establish itself as a preeminent animation company. Its most famous animated cartoon character, Mickey Mouse, came into being in 1928. The company would later expand into live-action films, television production and theme parks. Its current subsidiaries include Touchstone Pictures, Pixar Animation Studios and Lucasfilm. In 2016, the net income of Disney exceeded $9 billion. In contrast to Disney’s long history, 21st Century Fox was founded in 2013 through the resources of Rupert Murdoch’s News Corporation, which was itself established in 1979. Five years after its creation, Murdoch’s company acquired the famed 20th Century Fox film studio, whose name had to be modified so it would fit into the new millennium.

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