Disney makes enormous deal to buy 21st Century Fox
According to a press release, Disney will acquire 21st Century Fox’s studio and television production assets for a staggering $52.4 billion.
The deal allows Fox shareholders to receive 0.2745 shares of Disney in exchange for each share of 21st Century Fox stock they own.
The agreement leaves Fox retaining its Fox News and sports assets, but has Disney owning Fox’s A&E and Star TV networks, as well as its regional sports operation, movie studios. Also included in the sale are Fox’s stakes in Sky and Hulu and other assets.
The press release confirmed that Disney’s Chief Executive Officer, Bob Iger, will remain through 2021 to “provide the vision and proven leadership required to successfully complete and integrate such a massive, complex undertaking.”
Speculation on Iger’s continuing leadership was fueled by thoughts that he could leave Disney to enter the 2020 election.
The massive deal announcement enters amid validated interest for Fox from not just Disney, but also Comcast and Verizon. Both The Wall Street Journal and CNBC reported in the last month that Comcast and Verizon had approached Fox about buying some part of the company, indicating signs of a burgeoning bidding war.
Now that the purchase agreement has been set, we can expect continued rating declines across many large cable networks as more consumers choose to severe cords and log in to cheaper and more customized web-based services.