Disney/Fox Family sale imminent

Walt Disney is reportedly close to snapping up Fox Family Worldwide, jointly owned by News Corporation and Saban Entertainment.

A deal is said to be imminent under which Disney is to pay the channel's co-owners $3bn, as well as assume $2.3bn of debt.

If the deal goes through, Disney is expected to use the channel's distribution to 81m US homes to launch a new pre-school network Playhouse Disney next year. The channel is a spin-off from the Playhouse Disney block on the Disney Channel. Disney's existing interests in the stateside TV scene include the ABC network, ESPN and the Disney Channel.

Using cash from its 49.5% stake in Fox Family, News Corp is, in turn, expected to pursue Murdoch's long-held desire to buy US DTH satellite TV network DirecTV from General Motors. Murdoch hopes to merge DirecTV into his SkyGlobal Networks division.

The expected Disney/News Corp deal arose after Saban exercised its option to sell its Fox Family stake to News Corp. After failing to agree on the value of the channel, a joint sale was decided.