A deal of the 21st Century: Disney buys $52bn of Fox assets


Bob Iger (left), CEO of Walt Disney Company, and Rupert Murdoch, EC of News Corp
On Thursday, Disney announced that they were to acquire a large amount of 21st Century Fox for $52.4 billion in stock. Disney will get all of Fox’s movie studios, National Geographic, Asian pay-TV operator Star TV, as well as stakes in Sky and Hulu.

Rupert Murdoch’s 21st Century Fox agreed to sell its entertainment businesses to Walt Disney in a monumental $66 billion deal, which will make Disney the world’s largest media company if the deal is approved by regulators. It stands to add Fox’s 39% stake in the European network Sky, as well as the 21st Century movie studio to Disney’s already enormous media portfolio that include popular franchises such as Marvel, Lucasfilm, ESPN, and the news broadcasting network ABC.

You can expect to see a lot more crossovers and shared universes now

Disney will pay $52.4bn in stock and assume $13.7bn of debt under the deal. Shareholders of 21st Century Fox will receive 0.2745 Disney shares for each 21st Century Fox share they hold. Bob Iger, Disney’s CEO, has extended his contract until 2021.

“We’re honoured and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building,” Iger said, adding that the deal would “significantly increase our portfolio of well-loved franchises and branded content to greatly enhance our growing direct-to-consumer offerings”.

Mr Murdoch said: “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.”

For the comic-book nerds out there, expect a few big twists in the next Marvel movies. Perhaps we’ll finally get to hear the word “mutant” in Avengers: Infinity War.

 

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M.H. Ibrahim

Ibrahim is probably the most famous spy of the Cold War. His most well-known accomplishments include invading Russia in the winter, drinking all of Moscow's alcohol in one night, inventing Maoism, and cleaning the lint from Che Guevara's beret. Ibrahim has read all the books, and likes capitalism, especially the Hollywood cinema. He can be found most days smoking a blunt on Saturn's moon Titan.

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