Comcast, Verizon keen on Fox stake?

NEW YORK: Comcast Corp and Verizon Communications Inc have looked into acquiring a big portion of 21st Century Fox Inc, swooping in after talks to sell film and television assets to Walt Disney Co cooled, according to people familiar with the matter.

Comcast, the owner of TV networks such as NBC and the movie studio Universal Pictures, approached the Rupert Murdochcontrolled media group about the assets, said the people. Verizon, the biggest United States wireless carrier, had some interest in the same collection of holdings, said two of the people.

Disney had sought a stake in European satellite carrier Sky Plc, the National Geographic, FX and Star India cable networks, and the 20th Century Fox film and TV studio, said the people. Comcast would also be interested in Fox’s regional sports networks, said one of the people.

Fox would be left with its assets including its cable news outlets and broadcast channel, including local stations.

A deal between Comcast and Fox would radically change the media landscape, consolidating some of the biggest entertainment properties in the world and putting two of the six major Hollywood studios under one roof.

The rise of online competitors like Netflix and YouTube has slowed the growth of pay-TV, and Comcast, the biggest US cable provider, has been adding film and TV assets to ensure it has a hand in both programming and distribution.

A deal with Fox would vault Verizon into the entertainment business, where top wireless rival AT&T Inc has also been attempting to venture with the acquisition of Fox competitor Time Warner Inc.

The AT&T transaction has been awaiting approval by the US Justice Department, where antitrust officials are concerned about consolidation in the media industry — worries that could also weigh on any potential Fox deal.

Fox is also awaiting approval in the United Kingdom to acquire full control of Sky, a deal that has been held up by regulators.

Lachlan Murdoch, executive chairman of Fox, told shareholders at its annual meeting on Wednesday that it expected the deal to close in the middle of next year.

Fox could give Comcast, whose businesses are still heavily concentrated in the US, entree into many more international markets.