Disney buys Fox in deal that could rock Hollywood

DCNFJack Crowe, DCNF

( ADRIAN SANCHEZ-GONZALEZ/AFP/Getty Images)

The Walt Disney Company announced Thursday it has finalized the acquisition of Rupert Murdoch’s 21st Century Fox in a $52.4 billion all-stock transaction that will likely have massive implications for the American entertainment industry.

The acquisition, which awaits the approval of federal regulators, was prompted by Disney CEO Robert Iger’s desire to propel Disney into the streaming space with the hopes of competing with giants like Netflix and Amazon. To that end, the deal grants Disney ownership of 21st Century Fox’s movie studio, regional sports networks, cable channels FX and National Geographic as well as Fox’s stakes in Hulu and two of Fox’s international properties: Sky of Britain and Star of India.

The Fox broadcasting companies, Fox News and Fox Business among them, will be spun off under a separate company.

“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,” Iger said in a statement. “We’re honored and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building”

The merger provides Disney with the entertainment properties necessary to compete with the more youthful Silicon Valley entertainment companies but will also result in the downsizing of the historic 20th Century Fox studios.

Disney has plans to introduce two streaming services in the near future; ESPN Plus is expected to arrive in the spring, while another platform based on the Disney, Marvel, Lucasfilm and Pixar brands will arrive late next year. The acquisition will also give Disney access to 21st Century Fox’s minority stake in Hulu – the established television streaming service – resulting in Disney having a controlling stake in the platform, as it already owned 30 percent.

Follow Jack on Twitter

The Daily Caller News Foundation is working hard to balance out the biased American media. For as little as $3, you can help us. Freedom of speech isn’t free. Make a one-time donation to support the quality, independent journalism of the Daily Caller News Foundation. We’re not dependent on commercial or political support and we do not accept any government funding.

For licensing opportunities of our original content, please contact [email protected].

DONATE TO BIZPAC REVIEW

Please help us! If you are fed up with letting radical big tech execs, phony fact-checkers, tyrannical liberals and a lying mainstream media have unprecedented power over your news please consider making a donation to BPR to help us fight them. Now is the time. Truth has never been more critical!

Success! Thank you for donating. Please share BPR content to help combat the lies.

Comment

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the ∨ icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.

BPR INSIDER COMMENTS

Scroll down for non-member comments or join our insider conversations by becoming a member. We'd love to have you!

Latest Articles