Genting Shares up Following Dispute Resolution with Fox and Disney

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B. Wright Friday, July 26, 2019

After a long-awaited resolution to an intellectual property rights dispute between 21st Century Fox (Disney) and Genting Malaysia Bhd., Genting shares are up to highs not seen in the last eight months.

The drastic drop in Genting share value was triggered when Fox drew away from an agreement with Genting. Under the agreement, Genting would be allowed to use intellectual property from 21st Century Fox in a new Genting-owned and operated Kuala Lumpur theme park. When Fox backed away from the deal, the park seemed at risk which triggered a downturn in investor confidence. Following the recent resolution between the entertainment giants, the theme park plans are back on track as is investor faith.

The dispute between Fox, Disney and Genting was set to be settled in a U.S. court but to the delight of many an investor, the companies settled out of court. The settlement came down to a renaming of the proposed park. Genting will continue to use intellectual property from 21st Century Fox but the park will no longer bear Fox’s name.

The settlement comes as a bit of a surprise to some due to the gravity of the claims and counterclaims made by Genting, Disney and Fox. When the American entertainment companies decided to pull out of the deal between themselves and Genting, the shockwaves sent Genting shares to lows more significant than anything the company had seen in more than a year. Genting, in response, sued the two companies for over a billion dollars. Clearly, the resolution brings great comfort to everyone involved, investors included.

Put to numbers, Genting shares are now up well over 5%, selling at nearly 4 ringgits. Even more impressive is the jump in stock to 15% that is expected which will prove to be the largest surge in several years.

While we don’t have the new name of Fox World yet, one thing is certain. Genting now has a green light to finalize plans to provide entertainment to over 30 million people near Kuala Lumpur, whether they gamble or not.