Fox Stock Slips 4 Percent on Morning Ahead of Anticipated Disney Takeover
Nothing lasts forever — not even the stock bump from one of Hollywood’s premier studios looking to buy you out.
Shares of 21st Century Fox dipped more than 3.6 percent in early trading on Wednesday, one day ahead of Disney’s anticipated acquisition of its studio and several of its cable channels, including FX and its regional sports networks. Still, it’s been a good run for Fox shareholders, with its stock jumping from about $25 a share in early November — when the Disney rumors first started swirling — to about $33 a share on Wednesday morning.
Despite Wednesday’s downturn, shares of Fox have been trending up the last three months
Also Read: Why Fox Buyout Could Make Disney the 'Most Powerful Company' in Hollywood
Disney, on the other hand, was flat on Wednesday, trading up 0.24 percent, after running up a couple percent in the last week. The deal would fill Disney’s arsenal with a laundry list of top Fox franchises, including “Avatar,” “Deadpool,” and “The Simpsons.” Adding the additional content would help Disney as it looks to launch a streaming competitor to Netflix in 2019 — as well as give it a controlling stake in Hulu.
The stock-based deal, first reported by CNBC’s David Faber, would cost Disney upwards of $60 billion. Fox would be left with its broadcast network, Fox Sports and Fox News.
Tony Maglio contributed to this report.
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