Breaking News: The Walt Disney Company Acquires Twenty-First Century Fox For $52.4 Billionby ZachPerilstein
On the day that Star Wars: The Last Jedi comes out. Disney has officially announced its purchase of 21st Century Fox.
The transactions include 21st Century Fox's film and television studios, cable entertainment networks and international TV businesses. Disney touted that popular entertainment properties X-Men, Avatar, The Simpsons, FX Networks and National Geographic.
Expands Disney’s direct-to-consumer offerings with addition of 21st Century Fox’s entertainment content, capabilities in the Americas, Europe and Asia; Hulu stake becomes a controlling interest. Addition of extensive international properties, including Star in India and Fox’s 39% ownership of Sky across Europe, enhances Disney’s position as a truly global entertainment company with world-class offerings in key regions
Robert A. Iger to remain Chairman and CEO of The Walt Disney Company through 2021.
Disney now owns Fox's film production businesses. Including Twentieth Century Fox, Fox Searchlight, and Fox 2000.The studios are home of Deadpool, Fantastic Four, X-Men, and Avatar. Fox's TV units that include Fox Television, FX Productions, and Fox21. The Americans, This Is Us, Modern Family, The Simpsons and many more. Disney will also acquire FX Networks, National Geographic Partners, Fox Sports Regional Networks, Fox Network Groups International, Star India, and Fox's interest in Hulu.
“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,” said Bob Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “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.”
“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,” said Rupert Murdoch, Executive Chairman of 21st Century Fox. “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.”
Bob Iger will continue being Chairman and CEO through the year 2021.
Disney CEO Bob Iger has said he wants to keep making sequels to Deadpool. "There may be an opportunity for an R-rated Marvel brand as long as we let audiences know what's coming." Iger is also very interested in what Searchlight and Fox 2000 was able to accomplish. He fully intends to stay in those businesses.
The acquisition was made due to the changing media landscape. Rupert Murdoch thought it was the perfect time to sell his assets. Disney is launching a direct-to-consumer ESPN service in 2018. In 2019 Disney will launch a Disney-centric (probably with more FOX now) streaming service. Disney will also now be able to manage Hulu better with the controlling interest.
The deal will be reviewed by the Justice Department. Fox would have to pay Disney $1.525 billion if they back out. Disney would pay Fox $2.5 billion if regulators block the acquisition.
Bob Iger said on Good Morning America. That him and James Murdoch will have discussions about a potential role in The Walt Disney Company. Rumors were swirling that James Murdoch could be the potential successor to the Disney throne. For now, Bob Iger will remain until 2021 to oversee the transition process. Although Mr. Iger gave a very political answer when he was asked about his future in politics. A development that could become quite intriguing.
Things will never quite be the same. Disney now owns assets of 21st Century Fox. Cultjer will give updates as changes happen.