Fox Is Said to Keep Studio Lot, Real Estate after Disney Deal


(Bloomberg)—21st Century Fox Inc. will retain its real estate portfolio, including the storied 20th Century film and television studio lot in Los Angeles, when it sells a large chunk of assets to Walt Disney Co., according to people familiar with the matter.

Fox will spin off the assets it plans to keep, with Disney acquiring the studio, cable channels such as FX and National Geographic, and international assets in a deal valued at about $60 billion including debt, the people said, asking not to be identified discussing private information. The arrangement would allow the new spinoff, controlled by the Murdoch family, to rent studio space to Disney, while Fox employees in the businesses it retains — Fox News, the Fox broadcast network and the FS1 sports channel — would be able to remain on the property.

The deal between Disney and Fox could be unveiled as early as Thursday before trading opens in New York, one person said.

Fox’s real estate portfolio is vast, including properties in the U.S., South America and Asia, according to regulatory filings. Being able to charge rent on those assets will add to the emerging company’s revenue stream. The company also leases many buildings, such as its New York headquarters.

The Fox film lot in Los Angeles has a long history. The runaway budget of “Cleopatra” half a century ago led the Hollywood studio to give up part of the property to raise cash. That part of the lot now forms the business district Century City.

To contact the reporter on this story: Anousha Sakoui in Los Angeles at [email protected] To contact the editors responsible for this story: Crayton Harrison at [email protected] Bruce Rule


© 2017 Bloomberg L.P

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