$52.4 billion deal set to reshape entertainment landscape.
The much speculated acquisition by Disney of 21st Century Fox’s entertainment assets has been confirmed.
The deal – which is valued around $52.4 billion – covers the movie studio 20th Century Fox, the company’s TV production arm 20th Century Fox Television, Fox-owned cable networks (including FX and National Geographic) and the company’s stakes in international networks such as Star TV and Sky.
In addition, Disney will also gain a majority control of Hulu – Fox’s 30% stake will mean that Disney has a controlling interest in 60%.
Robert Iger, chief executive of Disney, has agreed to renew his contract for a fourth time in order to complete the integration – delaying retirement from July 2019 to the end of 2021.
While the merger still requires approval by the anti-trust regulators, it almost certainly means that Disney now has enough muscle to be able to take on the challenge from the likes of Netflix, Facebook, Google, Amazon and Apple; tech giants which have all been pushing aggressively into the entertainment business.
Disney, which owns ABC and ESPN, hopes 21st Century will supercharge its plans to introduce two Netflix-style streaming services. The company’s first major streaming effort, ESPN Plus, will arrive in the spring. A second and still unnamed offering, built around the company’s Disney, Marvel, Lucasfilm and Pixar brands, will roll out late next year.
“We’re honoured and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building,” Robert Iger commented.
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