Disney to acquire 21st Century Fox – Deal includes X-Men, Fantastic Four, Avatar, The Simpsons and more
Adding to the major mergers The Walt Disney Company has made over the years, Disney has now announced they’ve reached deal to acquire 21st Century Fox, including the Twentieth Century Fox Film and Television studios, along with cable and international TV businesses, for approximately $52.4 billion in stock. But Disney isn’t getting the whole kit and caboodle.
Immediately prior to the acquisition, 21st Century Fox will separate the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network into a newly listed company that will be spun off to its shareholders, and will not be a part of the purchase.
Combining with Disney are 21st Century Fox’s film production businesses, including Twentieth Century Fox, Fox Searchlight Pictures and Fox 2000, which are the homes of “Avatar”, “X-Men”, “Fantastic Four” and “Deadpool”, as well as “The Grand Budapest Hotel”, “Hidden Figures”, “Gone Girl, “The Shape of Water” and “The Martian”. They’re also acquiring its television creative units, Twentieth Century Fox Television, FX Productions and Fox21, which have brought “The Americans”, “This Is Us”, “Modern Family”, “The Simpsons” and many more hit TV series to viewers across the globe. Disney will also acquire FX Networks, National Geographic Partners, Fox Sports Regional Networks, Fox Networks Group International, Star India and Fox’s interests in Hulu, Sky plc, Tata Sky and Endemol Shine Group.
At the request of both 21st Century Fox and the Disney Board of Directors, Robert A. Iger has agreed to continue as chairman and chief executive officer of The Walt Disney Company through the end of calendar year 2021.
“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.”
This transaction will enable Disney’s recently announced Disney and ESPN-branded direct to consumer offerings, as well as Hulu, to create more appealing and engaging experiences, delivering content, entertainment and sports to consumers around the world, wherever and however they want to enjoy it.
The agreement also provides Disney with the opportunity to reunite the X-Men, Fantastic Four and Deadpool with the Marvel family under one roof and create richer, more complex worlds of inter-related characters and stories that audiences have shown they love. The addition of Avatar to its family of films also promises expanded opportunities for consumers to watch and experience storytelling within these fantasy worlds. Already, guests at Disney’s Animal Kingdom Park at Walt Disney World Resort can experience the magic of Pandora — The World of Avatar, a new land inspired by the Fox film franchise that opened earlier this year.
Disney’s international reach would greatly expand through the addition of Sky, which serves nearly 23 million households in the U.K., Ireland, Germany, Austria and Italy; Fox Networks International, with more than 350 channels in 170 countries; and Star India, which operates 69 channels reaching 720 million viewers a month across India and more than 100 other countries.
Prior to the close of the transaction, it is anticipated that 21st Century Fox will seek to complete its planned acquisition of the 61% of Sky it doesn’t already own. Sky is one of Europe’s most successful pay television enterprises. Assuming 21st Century Fox completes its acquisition of Sky prior to closing of the transaction, The Walt Disney Company would assume full ownership of Sky, including the assumption of its outstanding debt, upon closing.
The Boards of Directors of Disney and 21st Century Fox have approved the transaction, which is subject to shareholder approval by 21st Century Fox and Disney shareholders, clearance under the Hart-Scott-Rodino Antitrust Improvements Act, a number of other non-United States merger and other regulatory reviews, and other customary closing conditions.
….whatever happened to Mickey Mouse????????