The Walt Disney Company has entered into an agreement 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.
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.
Combining with Disney are 21st Century Fox’s film production businesses, including Twentieth Century Fox, Fox Searchlight Pictures and Fox 2000, and its storied television creative units, Twentieth Century Fox Television, FX Productions and Fox21. 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.
Under the terms of the agreement, shareholders of 21st Century Fox will receive 0.2745 Disney shares for each 21st Century Fox share they hold. Disney will also assume approximately $13.7 billion of net debt of 21st Century Fox. The acquisition price implies a total equity value of approximately $52.4 billion and a total transaction value of approximately $66.1 billion for the business to be acquired by Disney, which includes consolidated assets along with a number of equity investments.
The acquisition is expected to yield at least $2 billion in cost savings from efficiencies realized through the combination of businesses, and to be accretive to earnings before the impact of purchase accounting for the second fiscal year after the close of the transaction.
Robert A. Iger, Chairman and Chief Executive Officer of The Walt Disney Company, said, “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.” Mr. Iger will continue as Chairman and Chief Executive Officer of The Walt Disney Company until the end of 2021.
USA, Burbank, CA & New York, NY
Related articles:
- Disney doubles its investment in Vice Media Posted on December 9, 2015
- The Walt Disney Company completes Lucasfilm acquisition Posted on December 18, 2012
- Disney to acquire Lucasfilm Ltd Posted on October 31, 2012
- The Walt Disney Company acquires online parenting platform Babble Media Posted on November 19, 2011
- Disney acquires Rocket Pack Posted on March 4, 2011
- Disney acquires kids social online community site Togetherville Posted on February 24, 2011
- Disney acquires Tapulous, a developer of music games for the iPad, iPhone, and iPod Touch Posted on July 2, 2010
- Disney Completes Marvel Acquisition Posted on January 1, 2010
The Department of Justice has approved the Walt Disney Company’s $71 billion bid for the entertainment assets of 21st Century Fox. The government’s approval was filed in federal court on the condition that Disney, which already owns ESPN, divest all of Fox’s 22 regional sports networks, which include valuable channels like the Yankees’ YES network.
The 
Fusion Corporate Partners 
You must be logged in to post a comment.