Disney now officially owns 21st Century Fox after more than a year of negotiations and a $71.3 Billion exchange.
Last week, the company announced that the merger was effective immediately, growing Disney’s assets to include 21st Century Fox’s film and TV studios, an additional 30% stake in streaming service Hulu, US cable channels FX, and National Geographic, as well as Indian media conglomerate Star India.
The Walt Disney Company Chairman and Chief Executive Officer Robert Iger said: “This is an extraordinary and historic moment for us, one that will create significant long-term value for our company and our shareholders. Combining Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the preeminent global entertainment company, well positioned to lead in an incredibly dynamic and transformative era.”
The acquisition of 21st Century Fox’s global collection of businesses and franchises including Marvel, Avatar, The Simpsons and Star Wars could likely be integrated into Disney’s new streaming service Disney+, which is scheduled for launch later this year.
Iger also announced Disney’s plans to become consumers a top choice when seeking high-quality content and entertainment options. He described the “new Disney” as an “unprecedented collection of high-quality creative content, stellar talent and cutting edge-technologies” that are expected to bring in around $10 billion in annual revenue this year in expanding Disney’s content strategy globally. The merger, Iger said, was a strategic move to “meet growing consumer demand and increase its international footprint and expand its direct-to-consumer offerings.”
Disney’s assets now include:
- ESPN+ for sports enthusiasts
- Disney+ set to launch in late 2019
- Combined ownership stake in Hulu
- Twentieth Century Fox
- Fox Searchlight Pictures
- Fox 2000 Pictures
- Fox Family and Fox Animation
- Tata Sky
- Endemol Shine Group
- Big Ten Network
- Fox’s entire portfolio of news, sport, business, TV and cable channels
In its statement to the press, Disney confirmed: “ is also acquiring approximately $19.8 billion of cash and assuming approximately $19.2 billion of debt of 21st Century Fox in the acquisition. The acquisition price implies a total equity value of approximately $71 Billion and a total transaction value of approximately $71 Billion.”
It also announced the value per share is approximately $51.57.
