- Disney has reportedly been in talks to acquire parts of 21st Century Fox.
- Netflix shares are slipping after the news.
- Disney is set to pull its content from Netflix to start its own streaming service in 2019.
- Watch shares of Netflix move in real time here.
Shares of Netflix are sliding, down 0.67% at $US198.67, after a CNBC’s David Faber reported that Disney has been in talks to acquire certain entertainment parts of 21st Century Fox.
The potential deal would not include Fox’s broadcast network, as Disney wouldn’t be able to own two broadcast networks, the report says. The talks have been about the studio divisions of Fox’s business, along with National Geographic, FX Networks and the UK’s BSkyB.
The talks come after Disney acquired BAMTech to help build out its standalone streaming services for the company’s sports and entertainment properties. Adding Fox’s entertainment assets could bolster Disney’s streaming offerings when it starts offering its services in 2018 and 2019. Netflix is the current holder of the rights to much of Disney’s iconic catalogue of content. That deal is set to expire in 2019.
Netflix hasn’t been sitting still though. The company reportedly plans to spend more than $US7 billion on content next year as it develops more original content. Netflix also bought MillarWorld and poached Shonda Rhimes from her longstanding host, ABC.
Disney is up 1.27% after the news but is down 5.79% this year.
Netflix is up 56.38% this year.