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Disney reportedly in talks to buy majority of 21st Century Fox assets

Disney reportedly in talks to buy majority of 21st Century Fox assets

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While no price has been quoted, nor has a deal been written thus far, it's now being reported that Fox's stock is up by more than 7% since reports of the talks were revealed via CNBC and The Wall Street Journal.

Representatives of Disney and Fox had no comment.

According to CNBC, the talks have taken place over the last few weeks but there is no guarantee a deal will be finalized and the two sides are not in talks at the moment.

Disney was reportedly interested in buying Fox assets including its studio division, partial ownership of the United Kingdom telecoms company Sky, and networks such as National Geographic and FX. Sources said that Disney also would "not purchase Fox' local broadcast affiliates".

The talks indicate the challenges faced by traditional media companies in competing with new-age tech media companies like Alphabet, Facebook, Amazon, and Netflix. United Kingdom media regulator Ofcom, though, determined that even coupled with News Corp, which owns three British newspapers and is also controlled by the Murdochs, the powerful media family's assets would still be considered only the third-largest provider of news in the United Kingdom. The deal between Fox and Disney is said to be aimed at leaving the former's news and sports properties and selling the rest to the latter.

While Fox's film division has struggled of late, it does have several popular franchises including James Cameron's Avatar, which has four sequels now in development. Even though Fantastic Four was a awful bomb one has to remember the X-Men franchise is incredibly fruitful with X-Men Apocalypse garnering $543.9 million worldwide and the hugely popular Deadpool breaking records as the highest grossing R-rated film with $783 million.

The deal makes a lot of sense for Disney especially with their Marvel acquisition recently passing the 5 billion dollar mark for total box office sales all time. Also the fact that Disney would be "buying film and TV studios, instead of TV and cable networks", shows how "much the media landscape has changed" (RECODE.net, 11/6).

Shares of 21st Century Fox spiked 6%, while Disney gained 1% on the news. And fans quickly got excited about the prospect of more of Marvel's properties coming together under one roof. "X-Men" vs. "Avengers", anyone?

Give us X-Men. That's all we ask.

With the large assortment of characters at its disposal, Fox has worked to build its own Marvel universe around the X-Men.