After weeks of mounting speculation – and a rumored competing bids by rivals Comcast Corp. and Verizon that never materialized – Disney and 21st Century Fox announced early Thursday that the former would acquire most of the latter's entertainment assets in a deal worth $52.4 billion, according to the official press release.
Here's what Disney is buying, according to the release:
Combining with Disney are 21st Century Fox’s critically acclaimed film production businesses, including Twentieth Century Fox, Fox Searchlight Pictures and Fox 2000, which together offer diverse and compelling storytelling businesses and are the homes of Avatar, X-Men, Fantastic Four and Deadpool, as well as The Grand Budapest Hotel, Hidden Figures, Gone Girl, The Shape of Water and The Martian—and its storied television creative units, Twentieth Century Fox Television, FX Productions and Fox21, which have brought The Americans, This Is Us, Modern Family, The Simpsons and so many more hit TV series to viewers across the globe. Disney will also acquire FX Networks, National Geographic Partners, Fox Sports Regional Networks, Fox Networks Group International, Star India and Fox’s interests in Hulu, Sky plc, Tata Sky and Endemol Shine Group.
Fox will then spin off the Fox Broadcasting network, Fox News, Fox Business, FS1, FS2 and Big Ten Network to its shareholders into a newly listed company. Under the terms of the agreement, shareholders of 21st Century Fox will receive 0.2745 Disney shares for each 21st Century Fox shares they hold. Disney will also assume approximately $13.7 billion of net debt of 21st Century Fox.
Meanwhile, Robert Iger, who was supposed to retire at the end of next year, will stay on to lead the Disney until at least 2021 (at this point, the long-time CEO, who has blown through many planned retirement dates, might lead the House of Mouse for the remainder of his natural life).
The deal is the largest ever in Disney's history, and comes just a day before the release of "The Last Jedi" the latest installment in its lucrative "Star Wars" series – a franchise it acquired a few years back.
Fox will keep its studio plot in LA and much of its real-estate holdings.
Rupert Murdoch, the longtime chairman of 21st Century Fox, 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."
As the Financial Times pointed out, the deal will end Murdoch’s long association with Hollywood and represents a division between the media mogul and his youngest son, James, Fox’s chief executive. The two companies did not comment on his future but James is likely to leave Fox upon completion of the sale.
Disney said it would seek $2 billion in cost savings from the deal. It expects Fox to complete its takeover of pan-European TV group Sky by the end of the first half of next year. Disney will end up as the ultimate owner of Sky as long as that transaction completes before Disney’s deal.
via http://ift.tt/2AGwv1D Tyler Durden