Disney's growth plans strike back as performance stalls

The latest results from Walt Disney show why it is keen for a tie-up with 21st Century Fox, a deal that would see media mogul Rupert Murdoch sell a big chunk of the empire he has spent a lifetime building.

Disney wants to buy Fox’s film and TV assets, including Sky, in a $52 billion deal. Last night, it reported that revenues at its own movie arm fell by 1%. It unveiled plans for another Star Wars series in an attempt to persuade investors it remains a money-spinning venture.

Profits rose thanks to President Trump’s tax cuts, they were up 78% in the fourth quarter to $4.4 billion (£3.15 billion).

Sales hit $15.3 billion, but only the famed theme parks showed signs of growth.

Disney shares rose a little, up 1.4% to $107 in New York.

Like Fox, Disney is competing with “streaming services” such as those provided by Netflix.

Sport product ESPN plus, a streaming service, will launch soon at $4.99 a month. The Star Wars franchise will gets its own TV series as well as further movie spin-offs.

The Fox/Disney deal is subject to scrutiny from US media regulators.

Some fear the combined group will have too much power in the industry.