The two sides are not now talking at this very moment, but given the on again, off again nature of the talks, they could be revisited.
The question is: If Disney buys 21st Century Fox, what happens to the current (and successful) trend of R-rated comic book movies? One is that Fox believes most in the future value of news and sports compared to entertainment, and there's some logic for that given the challenges movie studios and non-sports television networks are facing. However, it would include the 20th Century Fox studio.
The deal would give Disney control of another movie studio and significant TV production assets, and would give it more exposure to worldwide markets. Essentially, piggybacking off of Disney's reach and scale could give Fox advantages that it would not have if it continues solo. Disney already owns ABC, and therefore can not also own another broadcast network, due to FCC regulations. It would also prevent concerns about anti-trust practices, as Disney also owns ESPN and ABC News, which could be seen as direct competitors to Fox Sports and Fox News. The talks reportedly took place within the last few weeks, and it's not certain they will firm up a deal. The inside sources say Fox is interested in focusing on sports and news and would just be selling off most of its entertainment assets. Both companies had no immediate comment when contacted by Bloomberg News.
It did discuss buying Fox's movie and TV production studios, cable networks FX and National Geographic and worldwide assets such as the Star network in India and European pay TV provider Sky Plc, CNBC said. The company previously announced that it will be pulling its content from Netflix and offering it through its own standalone streaming service, a controversial decision given the extra monthly expense that will put on some consumers.
It'd definitely be interesting.