Home Entertainment It’s official! Disney to buy Fox in $52.4 Billion deal

It’s official! Disney to buy Fox in $52.4 Billion deal

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Disney

The rumours have been swirling around for ages now that Disney was set to purchase 21st Century Fox for a ridiculous amount of money. Well, it’s now official. Disney finalised the deal today to acquire 21st Century Fox and some of its sports and entertainment assets – for a cool $52.4 Billion.

While the deal does mean that we may finally see the X-Men join the Marvel cinematic Universe, the deal is largely centred on Disney’s desire to take on the streaming market. Its acquisition of Fox means that Disney is now the majority stakeholder in Hulu. along with its plans for its own service, Disney will be a streaming juggernaut capable of making Netflix sweat a little.

From Variety:

  • The deal values the 21st Century Fox assets in the transaction at $66.1 billion, including $13.7 bllion in 21st Century Fox debt.
  • Disney chairman-CEO Bob Iger has extended his contract with the company for another two years, through the end of 2021, in order to oversee the integration of the assets.
  • 21st Century Fox shareholders will receive 0.2745 Disney shares for each Fox share held
  • 21st Century Fox will spinoff Fox Broadcasting Co., Fox Sports, Fox News, Fox Television Stations and a handful of other assets into a new company that will have revenue of $10 billion and earnings of about $2.8 billion.
  • 21st Century Fox will continue to pursue its acquisition of the remaining 61% stake in Euro satcaster Sky that it does not already own with the intention of Disney taking it over when the Disney-Fox transaction is completed.
  • Disney expects to realize $2 billion in cost savings from combining Disney and Fox’s overlapping businesses within two years of the deal’s closing.

“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 Iger. “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.”

21st Century Fox chairman Rupert Murdoch says if the deal:

“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.”

Soon, the world will be owned by Google, Facebook, Amazon and Disney.

Last Updated: December 14, 2017

28 Comments

  1. RinceThis

    December 14, 2017 at 14:24

    Praise be to the mouse. Praise be to the Mouse. That is what children will chant in a few years before they start their studies at the Mickey Academy.

    Reply

  2. Gavin Mannion

    December 14, 2017 at 14:26

    The first person to mention that stupid disney princess joke is banned for life and will lose 1000 internet points

    Reply

    • HvR

      December 14, 2017 at 14:49

      What joke are you Moana-ing about?

      Reply

      • Admiral Chief Silver Dragon

        December 14, 2017 at 14:50

        I bet he’s all Tangle’d up

        Reply

        • Ottokie

          December 14, 2017 at 14:51

          You two are Brave. 1000 is a lot of internet points

          Reply

          • Magu

            December 14, 2017 at 14:52

            Hey those points are Ariel big deal to some people.

          • HvR

            December 14, 2017 at 14:52

            Do not mind risking a bit internet Mulan

          • Ottokie

            December 14, 2017 at 14:53

            Our disqus accounts are about to be Frozen on here.

          • HvR

            December 14, 2017 at 14:56

            Just waiting for Gavin to give Aurora of anger then I will stop

          • Magu

            December 14, 2017 at 14:57

            Or Elsa what?

          • Ottokie

            December 14, 2017 at 14:57

            There it is xD

          • HvR

            December 14, 2017 at 14:59

            Ella have to wait and see

          • Admiral Chief Silver Dragon

            December 14, 2017 at 15:01

            I can afford to lose 1000, plenty more stocked up.

            Besides, he said the FIRST one to mention a princess (does Trevor count?) gets banned. Not the rest

          • HvR

            December 14, 2017 at 15:06

            It is worth it taking the Mickey out of him.

  3. Alien Emperor Trevor

    December 14, 2017 at 14:40

    I’m sure it’s great for shareholders. Time will tell if it’s great for us.

    Reply

    • HvR

      December 14, 2017 at 14:41

      less competition never great for us

      Reply

  4. Original Heretic

    December 14, 2017 at 14:43

    “Soon, the world will be owned by Google, Facebook, Amazon and Disney.”

    Soon?

    Reply

  5. cloudzn

    December 14, 2017 at 17:17

    I think most importantly, Hugh Jackman has stated that he will return to the Wolverine role only for an Avengers movie, please mouse house, make it so.

    Reply

    • Filmmaker

      December 18, 2017 at 13:22

      That would be very nice

      Reply

  6. G8crasha

    December 15, 2017 at 08:44

    I am more worried about whether or not they will bring their intended streaming service to South Africa. Rumour has it they will offer the service in 2019, and that means all the franchises they own will be exclusively streamed on their VOD service.

    Reply

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