A mega deal between Disney and Fox will be announced on Thursday, according to a new report on CNBC.
The $60 billion-plus pact will see Disney acquire key entertainment and sports assets from 21st Century Fox, including its film and TV studio. The CNBC report follows a Monday announcement that Comcast has opted out of its pursuit for Fox.
A spokesman for Fox declined comment. A Disney spokeswoman did not immediately respond to a request for comment. Shares of Disney were up 0.44% in early morning trading to just over $107, while shares of Fox rose .33% to $33.37.
Not all of Fox’s assets will go to Disney. The company will retain Fox News, the Fox broadcast network, and Fox Sports 1, which will be reconstituted into a new, independent company. According to CNBC, that would be worth roughly $10 a share. As part of the deal, Fox shareholders will get a stake in the new company, along with shares of Disney.
The pact is expected to dramatically reshape the entertainment business, eliminating one of the six major studios and giving Disney access to a vast library of shows and movies as it tries to launch a streaming competitor to Netflix. Under CEO Bob Iger, Disney has established a reputation for spending big to nab major entertainment companies, shelling out billions for the likes of Marvel, Pixar, and Lucasfilm.