Disney is buying most of 21st Century Fox for $52.4 billion

Disney is buying a huge chunk of 21st Century Fox in a deal that promises to reshape the media industry and help the ...

Posted: Dec 14, 2017 5:28 PM
Updated: Dec 14, 2017 5:28 PM

Disney is buying a huge chunk of 21st Century Fox in a deal that promises to reshape the media industry and help the entertainment giant fend off digital rivals such as Netflix.

The $52.4 billion deal will combine two of the biggest players in Hollywood.

The sale represents a remarkable turn in the career of octogenarian mogul Rupert Murdoch, who is cashing out after building a major media empire. For its part, Disney is adding even more prime entertainment assets to an already swollen portfolio as it battles upstart streaming services that have undercut the traditional cable subscription model.

In addition to 21st Century Fox's movie studio and regional sports networks, Disney is buying cable channels FX and National Geographic. Disney will also get Fox's stakes in Hulu and European pay-TV provider Sky.

Prior to the deal closing, 21st Century Fox will separate the Fox broadcasting network, Fox News Channel, Fox Business Network, and some national sports networks into a new company that will be spun off to its shareholders. The remaining properties would ideally in the coming years merge with News Corp., from which they split in 2013, Murdoch said on Fox Business Thursday morning.

Disney, which counts ESPN among its crown jewels, has suffered as consumers switch off their TVs and spend more hours watching streaming services such as Netflix that are distributed directly to consumers.

The deal allows Disney to expand its content, especially for streaming services. In addition to a majority stake in Hulu that it will have once the deal closes, Disney is preparing to launch two separate streaming services, one for sports and another focusing on entertainment. And it is pulling its content from Netflix in preparation for the launch. Adding Fox's television and movie studios and the content they own means adding to the stable of must-watch content it can offer directly to consumers -- and that streaming competitors can not.

There are also important international assets involved. Fox is in the midst of a lengthy regulatory review in the United Kingdom to take over the rest of the satellite broadcaster Sky it does not already own. In the announcement, Disney and Fox said "21st Century Fox remains fully committed to completing the current Sky offer and anticipates that, subject to the necessary regulatory consents, the transaction will close by June 30, 2018." Disney would then assume full ownership of Sky as long as Fox's transaction is completed before Disney's.

If the deal doesn't close, then Disney will retain Fox's current 39 percent stake of Sky "and we imagine they'll make their own bid for the rest of it," Murdoch said on Fox Business on Thursday.

The deal will needs to undergo regulatory review and will likely take at least a year to close. The Justice Department, which last month sued to block AT&T's purchase of CNN parent company Time Warner, will consider to what extent the new company could dominate the market, using its increased leverage to force cable companies and distributors to pay higher rates to carry Disney and Fox content.

News of a possible deal first came to light in early November when CNBC reported that Disney had approached 21 Century Fox about a deal to acquire the movie and television assets. That led to other companies, like Comcast, to explore an acquisition as well. But on Monday Comcast said in statements to media outlets that it "never got the level of engagement needed to make a definitive offer" and was withdrawing from the discussions.

As the two companies work to complete the deal and Disney works to integrate its new assets, Bob Iger, who had been expected to retire, will remain as chairman and CEO of Disney through 2021.

Speaking on Fox Business Thursday morning, Murdoch said he made it a condition of the deal that Iger would stay on.

"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."

There had been some reporting that Murdoch's son James, currently CEO of 21st Century Fox, would move over to Disney in a high level role and as a possible successor to Iger. But in a conference call with investors on Thursday morning, Iger said there are no immediate plans for James Murdoch.

"James and I have had a lot of conversations about the future of these companies," Iger said. "He will be integral to helping us integrate these companies over the next number of months and during that period of time we will continue to discuss whether there is a role for him here or not."

In a statement of his own, Murdoch said, "I'm convinced that this combination, under Bob Iger's leadership, will be one of the greatest companies in the world. I'm grateful and encouraged that Bob has agreed to stay on, and is committed to succeeding with a combined team that is second to none."

Minnesota Coronavirus Cases

Data is updated nightly.

Cases: 560450

Reported Deaths: 7122
CountyCasesDeaths
Hennepin1167211690
Ramsey48313858
Dakota42928423
Anoka38965419
Washington25195274
Stearns21198219
St. Louis16926298
Scott16187118
Wright14964128
Olmsted1282897
Sherburne1072580
Carver993045
Clay787390
Rice7701102
Blue Earth704240
Kandiyohi631381
Crow Wing624286
Chisago554750
Otter Tail547673
Benton536697
Mower453032
Goodhue448572
Douglas446071
Winona439549
Nobles401948
Morrison397559
McLeod397255
Isanti382559
Itasca379053
Beltrami375457
Polk367967
Steele366214
Becker359448
Lyon349748
Carlton331152
Freeborn329629
Pine313821
Nicollet310343
Brown295639
Mille Lacs285450
Le Sueur273822
Todd270030
Cass252526
Meeker239137
Waseca231921
Martin215230
Wabasha20003
Roseau198319
Hubbard174441
Renville172943
Dodge17253
Redwood166735
Houston162714
Cottonwood158221
Fillmore15229
Pennington151519
Chippewa147537
Wadena145821
Faribault145519
Sibley137110
Kanabec133622
Aitkin129436
Watonwan12609
Rock123419
Jackson118210
Yellow Medicine111319
Pipestone110526
Pope10386
Murray10319
Swift100418
Marshall85817
Stevens83310
Lake78819
Clearwater78514
Koochiching77813
Wilkin77312
Lac qui Parle73922
Big Stone5764
Lincoln5613
Grant5528
Norman5229
Mahnomen5178
Unassigned48678
Kittson46822
Red Lake3877
Traverse3625
Lake of the Woods3073
Cook1480

Iowa Coronavirus Cases

Data is updated nightly.

Cases: 359450

Reported Deaths: 5839
CountyCasesDeaths
Polk56274608
Linn20392330
Scott19245236
Black Hawk15611306
Woodbury14960221
Johnson1415481
Dubuque13196203
Dallas1094596
Pottawattamie10804162
Story1035747
Warren559186
Clinton541791
Cerro Gordo524987
Webster508792
Sioux507873
Marshall477575
Muscatine463297
Des Moines443165
Wapello4255121
Buena Vista422140
Jasper408470
Plymouth398779
Lee369255
Marion355775
Jones293455
Henry286837
Carroll280152
Bremer279860
Crawford262840
Boone259633
Benton251155
Washington249850
Dickinson243743
Mahaska225750
Jackson218942
Kossuth213763
Clay212325
Tama206971
Delaware204539
Winneshiek194933
Page190721
Buchanan189031
Cedar185023
Fayette183541
Hardin181942
Wright180635
Hamilton178449
Harrison176673
Clayton167355
Butler162734
Mills159020
Cherokee157738
Floyd156242
Lyon155341
Madison154819
Poweshiek153233
Allamakee149351
Iowa146224
Hancock144234
Winnebago136931
Grundy135532
Cass135154
Calhoun133411
Jefferson131235
Emmet129940
Shelby129037
Sac128419
Louisa127349
Appanoose126747
Mitchell125441
Union123332
Chickasaw122715
Guthrie118529
Humboldt118426
Franklin113121
Palo Alto111323
Howard102922
Montgomery101537
Unassigned10040
Clarke98524
Keokuk95031
Monroe94528
Ida90133
Adair84832
Pocahontas84121
Monona81430
Davis79924
Osceola77116
Greene76710
Lucas75723
Worth7138
Taylor65412
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Decatur5919
Van Buren55518
Ringgold53624
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