Disney’s bid to conquer Netflix and Hollywood
And trigger break-up of Murdoch empire
THE Walt Disney Company’s plans to buy large parts of 21st Century Fox from Rupert Murdoch would create a Hollywood powerhouse with the might to dwarf its rivals in Tinseltown.
Disney already owns Star Wars and Indiana Jones creator Lucasfilm, Toy Story and Finding Nemo maker Pixar, and Marvel Studios, the home of Spider-Man, The Avengers and X-Men as well as The Walt Disney Studios.
The company is now looking to take control of vast swathes of Murdoch’s empire, including 20th Century Fox. The two firms accounted for 40pc of film studio revenue in the US last year.
Disney is also eyeing 21st Cen- tury Fox’s National Geographic channels and FX Networks as well as the 20th Century Fox TV arm behind hit shows such as The Simpsons and Modern Family.
It could also buy 21st Century Fox’s 30pc stake in subscription service Hulu, taking its holding in the service to 60pc.
A deal would give Disney access to a huge library of content attractive to young families, adults and movie buffs as it launches its own streaming services in an audacious bid to take on Netflix and Amazon Prime.
The talks, currently on ice, have cast doubt over the future of the Murdoch empire. Even if a deal is not agreed with Disney, the fact that the family entered talks about breaking up the business is likely to attract the attention of other players such as telecoms group Verizon and Charter Communications, which is backed by US billionaire John Malone.
Murdoch- controlled 21st Century Fox owns 39pc of Sky and its attempts to buy the remaining 61pc in an £11.7bn deal have been held up by a probe by the Competition and Markets Authority.
Credit Suisse analyst Omar Sheikh said the talks with Disney ‘put a question mark’ over 21st Century Fox’s planned acquisition of Sky. And last night it emerged Sky could close down Sky News in a bid to push the deal through.
‘The continued provision of Sky News should not simply be assumed,’ it said in its submission to regulators at the Competition and Markets Authority scrutinising the proposed deal.
‘ Sky would likely be prompted to review the position in the event that the continued provision of Sky News in its current form unduly impeded merger and/ or other corporate opportunities available in relation to Sky’s broader business such as the transaction.’
It is now thought 21st Century Fox could abandon its plans to take full control of Sky and instead sell its stake to Disney.
The sale of assets to Disney could spell trouble for James Murdoch, who is chief executive of 21st Century Fox while his brother Lachlan and father are executive co-chairmen.
James is seen as an entertainment executive who is less inter- ested in news than his father and brother – potentially paving the way for Lachlan to take the helm at the trimmed down business that would still include Fox News and Fox Sports but not its film and TV studios or entertainment networks.
If Disney does take on 21st Century Fox’s stake in Sky, it would gain exposure to the British, Italian and German satellite TV markets. 21st Century Fox also owns Asian broadcaster Star TV.