Disney on 14 December 2017 reached a deal to acquire certain assets of 21st Century Fox (FOXA), the parent company of FOX Business, for approximately USD 52.4 billion in stock.
The total transaction is valued at USD 66.1 billion, including 21st Century Fox’s debt. The deal includes 21st Century Fox assets- Twentieth Century Fox Film and Television studios, along with cable and international TV businesses like Star India.
Prior to the acquisition, 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.
Disney's Robert Iger will continue to serve as the Chairman and CEO of Disney through 2021.
Highlights of the Walt Disney - 21st Century Fox Deal
New Company Called ‘Fox'
21st Century Fox Executive Chairman Rupert Murdoch will create a new company called ‘Fox' focusing on Fox assets such as Fox News, FOX Business, Fox Broadcasting and Fox Sports. It will have a cash flow of at least USD 2 billion a year. It will not be a part of Disney.
Disney will own the right to the original Star Wars film and a greater selection of Marvel comic book characters like the X-Men. The deal will also include FX Networks.
Disney will also acquire the studios that produce Marvel superhero movies like the 'Avatar' franchise. Founded in 1935, the Fox studio produced classics like 'The Sound of Music', 'Star Wars' movie and more recently 'Avatar' which turned Fox into the biggest ticket-seller of all time.
20th Century Fox telecasts shows like 'Modern Family', 'Family Guy' and 'The Simpsons'. Disney will now have rights on Fox Television shows.
As part of the deal, Disney will also get the FX and National Geographic cable networks.
Fox Regional Sports Networks
Owning ESPN, Disney will now add 22 regional sports networks including YES Network and Fox Sports West to its list.
Fox News Domestic and International cable channels
Disney will now get it hands over international channels like Star India, a major media company in India. It will be able to host other channels across countries including Mexico and Latin America.
Disney will also own 39.1per cent stake in Sky plc that is owned by Fox. Sky plc owns European satellite-TV and broadcaster Sky News.
Fox has been in talks to acquire all of Sky News and if the deal is completed, Disney will eventually enjoy full ownership of Sky.
Stake in Hulu
21st Century Fox owns a 30 per cent stake in the video on demand service Hulu, which will now be transferred to Disney.
Assets not included in the acquisition
Fox News, the Fox broadcast network and the FS1 sports cable channel are not included in the deal.
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