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| Version 1 | Version 2 |
|---|---|
| Fox shares jump on sale speculation | Fox shares jump on sale speculation |
| (about 1 hour later) | |
| Shares in 21st Century Fox have jumped amid reports that several major companies have come forward as suitors for parts of its business. | Shares in 21st Century Fox have jumped amid reports that several major companies have come forward as suitors for parts of its business. |
| The US firm's shares gained more than 4% on Friday, after several sources reported interest from Comcast, Sony and Verizon. | |
| Last week the company, which is led by the family of Rupert Murdoch, was said to be holding talks with Disney. | Last week the company, which is led by the family of Rupert Murdoch, was said to be holding talks with Disney. |
| 21st Century Fox has not directly addressed the speculation. | 21st Century Fox has not directly addressed the speculation. |
| The Wall Street Journal - in which the Murdoch family also has a large stake - reported that Fox is considering shedding its movie studio, cable networks and international businesses, including Europe-based broadcaster Sky. | |
| That would leave the firm more narrowly focused on sports and news. | That would leave the firm more narrowly focused on sports and news. |
| A break-up would represent a sharp shift in strategy for a family that has previously appeared intent on expansion. | A break-up would represent a sharp shift in strategy for a family that has previously appeared intent on expansion. |
| Last year, Fox announced a deal to take full control of Sky, in which it already has a 39% stake. But the merger has been delayed, pending approval by UK authorities. | Last year, Fox announced a deal to take full control of Sky, in which it already has a 39% stake. But the merger has been delayed, pending approval by UK authorities. |
| Media analyst Claire Enders, founder of Enders Analysis, said the speculation suggests that Fox is exploring other possibilities should that deal fall through. | Media analyst Claire Enders, founder of Enders Analysis, said the speculation suggests that Fox is exploring other possibilities should that deal fall through. |
| "I think this is really Plan B," she said. | "I think this is really Plan B," she said. |
| Market upheaval | |
| Comcast and Verizon are two of the dominant cable and internet providers in the US. | |
| Fox, by contrast, is known for its flagship Fox News channel, as well as National Geographic, Asia-based Star TV, and a range of sports channels and local news stations. | |
| The reports of takeover discussions come against the backdrop of upheaval in the media industry, as viewers turn increasingly towards online video, and away from subscriptions for pay-TV. | |
| Analysts say changing consumer habits have prompted media and entertainment executives to explore more consolidation of content creation and distribution functions. | |
| That shift was reportedly what fuelled Disney's approach; combining Disney's extensive entertainment offering with Fox's, might be a way to counter the growing threat from Amazon and Netflix. | |
| Wait and see | |
| There is unlikely to be any formal agreement to sell parts of 21st Century Fox before the future of a pending merger between AT&T and Time Warner becomes clear, analysts said. | |
| That deal would unite Time Warner's content with AT&T's massive distribution network, making it similar to a possible tie-up between Fox and a telecom giant such as Verizon or Comcast. | |
| But that deal is facing questions from US competition authorities. |