Disney Will Buy 21st Century Fox Assets for $52.4 Billion in Stock
Disney will buy some 21st Century Fox assets for $52.4 billion. The sale of the studio and television production assets will mean Century Fox shareholders will receive 0.2745 Disney shares for each 21st Century Fox share they own. The deal will leave Fox with its news and sports assets but its other TV and production channels including Fox's A&E and Star TV networks, regional sports operation, movie studios, and stakes in Sky and Hulu will move under Disney. Disney won the battle for the Fox assets after fighting off other serious players like Comcast and Verizon. The move is an interesting one for Disney who will have to contend with the decline in large cable networks across the U.S. as consumers opt for cheaper and more personalized streaming and web-based services.
Both parties happy with the deal
Robert A. Iger, Chairman, and Chief Executive Officer, The Walt Disney Company described the deal saying: “The acquisition of this stellar collection of businesses from 21st Century Fox reflects the increasing consumer demand for a rich diversity of entertainment experiences that are more compelling, accessible and convenient than ever before. We’re honored and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building, and we’re excited about this extraordinary opportunity to significantly increase our portfolio of well-loved franchises and branded content to greatly enhance our growing direct-to-consumer offerings. The deal will also substantially expand our international reach, allowing us to offer world-class storytelling and innovative distribution platforms to more consumers in key markets around the world.”
Executive Chairman of 21st Century Fox Rupert Murdoch, was equally delighted about the deal saying: “We are extremely proud of all that we have built at 21st Century Fox, and I firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace in what is an exciting and dynamic industry. Furthermore, I’m convinced that this combination, under Bob Iger’s leadership, will be one of the greatest companies in the world. I’m grateful and encouraged that Bob has agreed to stay on, and is committed to succeeding with a combined team that is second to none.”
Good news for comic fans
The move might be good news for comic book fans as the agreement means that X-Men, Fantastic Four, and Deadpool will unite with the Marvel family under the same production company. Disney will also now control the distribution of blockbuster film Avatar and its franchise. Meeting with investors are scheduled for today to explain the impact the deal has on them. The Walt Disney Company is a worldwide entertainment company that splits its interests across four segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. Disney had annual revenues of $55.1 billion in its Fiscal Year 2017. 21st Century Fox has a portfolio of cable, broadcast, film, pay TV and satellite assets accessible on six continents. It has a reach of more than 1.8 billion subscribers who consume Fox media in approximately 50 different languages every day.
Via: BusinessWire, Reuters
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