Disney to buy Fox film, TV businesses for $52.4 billion in stock

Disney to buy Fox film, TV businesses for $52.4 billion in stock

Disney to buy Fox film, TV businesses for $52.4 billion in stock

The Boards of Directors of Disney and 21st Century Fox have approved the transaction, which is subject to shareholder approval by 21st Century Fox and Disney shareholders, clearance under the Hart-Scott-Rodino Antitrust Improvements Act, a number of other non-United States merger and other regulatory reviews, and other customary closing conditions. Firstly, why was Fox selling?

Back in August 2009, Disney bought Marvel for $4bn.

"Managing Hulu becomes a little bit more clear... with a controlling shareholder rather than with equal partners", Disney chairman and CEO Bob Iger touted Thursday morning on a conference call.

Under the deal, expected to close in 12 to 18 months, Disney acquires 21st Century Fox's film and television studios, its cable entertainment networks and worldwide TV businesses. This consolidation of media ownership is something that has been considered long overdue by some investors.

It's a massive deal, and definitely gives Disney more power than you can possibly imagine everyone else.


"This is the right move at the right time as the marriage of these assets creates a much more formidable Disney", said Daniel Ives, an analyst at GBH Insights in a note to clients.

Incidentally, the acquisition impacts Fox's Indian operations as well. Star India CEO Uday Shankar, while continuing with his existing portfolio, was recently elevated and given an additional charge as the Asia president of 21st Century Fox's video business, which also includes Fox Network group. The past acquisitions of Marvel and Lucasfilm has given Disney accesses to huge licences such as Star Wars as well as The Avengers which have dominated box office sales over the last few years.

Deadpool, X-Men and Fantastic Four all join Marvel. Doctor Doom could show up to fight Iron Man before we know it. Fox is also now the home of the Alien and Predator movies. Disney will also own James Cameron's Avatar franchise.

While some have considered it unusual for Murdoch to give up control of assets in his media empire it is considered likely that he is exhausted of his holding being undervalued and what's to get what he can for them. In addition to a majority stake in Hulu that it will have once the deal closes, Disney is preparing to launch two separate streaming services, one for sports and another focusing on entertainment.

Acquiring a big portion of Sky means controlling part of the TV service that reaches 22.5 million European residents across 5 countries.

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