Disney and 21st Century Fox have come to an agreement for the Mouse House to buy major Fox assets to the tune of $52.4 billion in an all-stock deal. The acquisition includes the Fox film and television studios as well as other entertainment and sports properties. To shepherd to the merger to its conclusion, Disney CEO Bob Iger will postpone his announced retirement and will remain at the helm of the joined company through 2021.
The merger will provide Disney a massive cable footprint. Among other cable outlets, Disney will acquire National Geographic, FX, more than 20 regional sports networks, and 300-plus international channels. Included in this agreement is a 30 per cent stake in the streaming service, Hulu.
Apart from this deal, Fox will create a spin-off company that will retain several properties including the Fox News Channel, Fox Business, Fox Sports, and in addition to various other assets of the company, the Fox Broadcasting stations.
The finalized acquistion will greatly bolster Disney’s plans for a streaming service to rival Netflix, Amazon and Hulu.
Final regulatory approval of the deal is expected to take 18 months.