The Walt Disney Company and 21st Century Fox Reach a Deal


The Walt Disney Company announced today that it has reached a deal to buy most of 21st Century Fox’s assets, for an all stock amount of about 52.4 billion dollars.   This will give Disney ownership of 21Century Fox film and television studios, cable, and international television.  Disney will now own properties like Avatar, The Simpsons, and yes Deadpool,  X-men and the Fantastic 4!  This gives Disney/Marvel back the properties they’ve been trying to get.  I’m already excited about what they will do with that in the current Marvel Cinematic Universe films.

According to WDWMagic, this will also give Disney the “FX Networks, National Geographic, Fox Sports Regional Networks, Fox Networks Group International, Star India and Fox’s interests in Hulu, Sky plc, Tata Sky and Endemol Shine Group.”

The press release offered the following information.

“Building on Disney’s commitment to deliver the highest quality branded entertainment, the acquisition of these complementary assets would allow Disney to create more appealing content, build more direct relationships with consumers around the world and deliver a more compelling entertainment experience to consumers wherever and however they choose. 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.

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 (subject to adjustment for certain tax liabilities as described below). The exchange ratio was set based on a 30-day volume weighted average price of Disney stock. 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 (in each case based on the stated exchange ratio assuming no adjustment) for the business to be acquired by Disney, which includes consolidated assets along with a number of equity investments.”

The next step is getting the approval of the antitrust regulators.  According to the NY Times, prior to the announcement the Justice Department tried to block this merger in an attempt to stop The Walt Disney Company from getting even bigger.

If the acquisition is completed 21st Century Fox will be downsized and part of the organization will be consolidated into Walt Disney Studios.  But this will all depend on what the antitrust regulators decide.

What do you think?  Comment and let us know.

Sources:  Youtube,  NYTimes, WDWMagic

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