Dec 14, 2017 09:52 AM EST
Disney to Acquire 21st Century Fox Assets for $52.4 Billion
The Walt Disney Co. has made a historic move, announcing that they have made a $52.4 billion, all-stock deal to acquire 21st Century Fox. The deal was made yesterday.
"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", said Iger.
Rupert Murdoch also made a statement, 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."
Many saw this move coming, as it was the buzz amongst financial news as well as Disney news. This will now give Disney even more power in the media industry, including the majority control over Hulu and overseas markets with Fox's interest in Sky. They will also now own X-Men, Avatar and Deadpool, among other film properties, TV franchises including The Simpsons, This Is Us and Modern Family, FX and National Geographic Partners. Fox will maintain control of Fox Broadcasting, Fox News, Fox Business News, FS1 & FS2 sports networks, and Big Ten Network.
Disney chairman-CEO Bob Iger will stay on with the company through 2021, two years longer than originally planned, in order to see the deal through the early stages.
The company plans on saving about $2 billion with the integration of Disney's and Fox's overlapping properties.
"The new Fox will draw upon the powerful live news and sports businesses of Fox, as well as the strength of our Broadcast network. It is born out of an important lesson I've learned in my long career in media: namely, content and news relevant to viewers will always be valuable. We are excited by the possibilities of the new Fox, which is already a leader many times over", said Murdoch.
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