Walt Disney Buys 21st Century Fox For £49bn

Walt Disney says it is to buy 21st Century Fox’s entertainment assets for a total $52.Walt Disney says it is to buy 21st Century Fox’s entertainment assets for a total $52.4bn (£39bn).4bn (£39bn).

The media giant today said it would acquire most of Mr. Murdoch’s 21st Century Fox business, including its stake in UK broadcaster Sky and 20th Century Fox film studios, in an all-share deal.

Disney chief executive Bob Iger, who will continue to lead the combined company, said: “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.”

The deal includes Fox’s 39% stake in satellite broadcaster Sky, and the 20th Century Fox film studio, Disney announced.

Fox’s remaining assets, including Fox News and Sports, will form a new company.

The deal ends more than half a century of media expansion by Fox owner Rupert Murdoch, who is 86 years old.

He turned a single Australian newspaper he inherited from his father at the age of 21 into one of the world’s largest news and film empires.

Mr. Murdoch’s shift to selling assets rather than buying them has come as a surprise to those who expected him to hand over the businesses to his sons, James and Lachlan.

Disney will buy the Fox assets for $52.4bn in stock, plus about $13.7bn net debt, leaving the value of the deal at about $66.1bn.

It is not clear how the deal will be received by US antitrust regulators.

The US Department of Justice recently sued to block AT&T’s $85.4bn deal to buy Time Warner, on the basis that it will raise prices for consumers and competitors.

ANAHEIM, CA – MAY 5: Fireworks explode under cloudy skies as Disney dignitaries and characters appear in front of Sleeping Beauty Castle at the close of ceremonies for the 50th anniversary of Disneyland May 5, 2005 in Anaheim, California. Sleeping Beauty Castle, like many other attractions at Disneyland, is adorned with special decorations for today’s anniversary events. Disneyland, in southern California, is the original Disneyland theme park founded by Walt Disney in 1955.

Fox’s proposed deal to buy the remainder of Sky is being already investigated by the UK Competition and Markets Authority (CMA), which is due to publish provisional findings in January.

The BBC understands that the Disney deal will not alter that investigation.

Disney chief executive Bob Iger will remain in his role until the end of 2021.

Fox is selling assets including its FX and National Geographic cable channels and media company Star India.

Disney also will buy Fox’s stake in the Hulu video streaming service, giving it majority control of a competitor to Netflix.

Hulu is also partially owned by Comcast and Time Warner.

The deal will also add to Disney’s huge back catalog, with high-grossing films such as the original Star Wars movie, Avatar, and Deadpool, as well as TV hits.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: