Rupert Mudorch’s 21st Century Fox (NASDAQ:FOXA) has reportedly restarted talks to sell most of the company, including its stake in UK broadcaster Sky PLC (LON:SKY), to Walt Disney Co. (NYSE:DIS).
Fox is said to be in talks with Disney to sell its film studio, cable channels and international businesses, including India’s Star network, and Sky.
Negotiations between the two were believed to have ended in November but have now resumed, according to reports, including The Wall Street Journal, a division of Murdoch’s News Corp.
A potential deal would leave Fox with the Fox News Channel, Fox broadcast network and its sports rights.
It would also end Fox’s pursuit to buy the rest of the stake in Sky that it does not already own for £11.7bn.
The UK’s Competition Markets Authority is reviewing the deal after a referral by culture secretary, Karen Bradley, in September over worries about the level of influence it would give media companies controlled by the Murdoch family as well as its possible impact on Fox’s commitment to broadcasting standards.
UK watchdog, Ofcom, has raised concerns over media plurality issues.
A deal with Fox would boost Disney’s content ahead of its plans to launch its own streaming service in 2019.
Competition for streaming has been growing as more consumers turn to online viewing and as Amazon.com Inc. (NASDAQ:AMZN) and Netflix Inc (NASDAQ:NFLX) invest heavily in sourcing and creating their own content. In November, CNBC reported that Fox's managers decided to sell most of the business as they believed the company could not gain the size needed to compete with Amazon, Netflix and other major competitors.