Disney buys 21st Century Fox for $52.4 billion

By Barry Eitel

SAN FRANCISCO

The Walt Disney Company announced Thursday it would acquire 21st Century Fox in a landmark deal worth $52.4 billion.

According to the terms of the all-stock deal, Disney will own film studio 20th Century Fox, 20th Century Fox Television production division as well as Fox networks like FX and National Geographic.

Disney will also likely own several global networks including Star TV and Sky, which Fox is in the process of acquiring before the deal is finalized.

Disney will gain a controlling interest in subscription video on demand service Hulu after adding Fox’s 30 percent stake to its 30 percent stake.

Fox is shedding its entertainment businesses to focus on its more-profitable news and sports channels. The Fox broadcasting network and stations including Fox News, Fox Business, FS1, FS2 and Big Ten Networks will be spun off when the deal goes through.

Fox News has garnered fame for its pointedly right-wing commentary and the channel has been repeatedly praised by Republican President Donald Trump.

“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,” Robert Iger, chief executive of Disney, 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, 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,” he added, referring to the Fox CEO.

Fox’s film studio is behind the popular X-Men films and Avatar, which is set to have four sequels in the coming years with a collective budget of $1 billion.

“We are extremely proud of all that we have built at 21st Century Fox, and I firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace in what is an exciting and dynamic industry,” Murdoch said in a statement.