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Disney in talks to buy major stake of Twenty-First Century Fox, CNBC reports

Disney in talks to buy major stake of Twenty-First Century Fox, CNBC reports
From CBC - November 6, 2017

Rupert Murdoch-controlled Twenty-First Century Fox has held talks to sell most of the company to Walt Disney Co, CNBC reported on Monday, citing unnamed people familiar with the matter.

Fox's shares rose 5.8 per cent to $26.40 US in afternoon trading, after being halted in the morning when the report came out. Disney's shares were up 1.2 pct at $99.86 US.

The CNBC report said the two sides were not talking currently, but had held talks in the last few weeks, reflecting a view among Fox managers that the firm could not gain the size needed to compete with Amazon, Netflix and other major media players.

A Disney spokesman did not immediately respond to a request for comment while Fox was not immediately available for comment. Disney, which under U.S. rules could not own two broadcast networks, would not purchase all of Fox, CNBC reported, citing the same sources.

Disney would not seek to buy Fox's sports programming assets for fear of running foul of antitrust laws with its own ESPN network, and would also not buy Fox News or Fox's local broadcasting affiliates due to Disney's ownership of ABC, the report said.

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