Complete Story
12/14/2017
Disney buys much of Fox in megamerger that will shake world of entertainment and media
NEW YORK — The Walt Disney Company, an entertainment firm as sprawling as one of its landmark theme parks, has pulled off one of the largest media mergers in history by acquiring the majority of assets from rival 21st Century Fox.
The announcement resets the Hollywood power grid. Disney, the nation’s largest studio by box office returns and the company behind the Marvel and “Star Wars” franchises, is acquiring Fox, the third-largest studio by that metric, known for the blockbuster “X-Men” and “Avatar” franchises as well as a host of mid-budget crowdpleasers and critically acclaimed films.
It also brings brands such as FX, National Geographic and “The Simpsons” into the same fold as ESPN and ABC — all part of Disney’s gamble that a beefed-up company will be better equipped to tackle a slew of Silicon Valley giants.
Disney will pay $52.4 billion for Fox, which for its part will spin off Fox broadcast networks, the Fox News Channel and Fox Business Channel, the Fox studio lot in Los Angeles and several national sports channels, leaving them in the hands of 21st Century Fox chairman Rupert Murdoch and his family. Robert Iger, the chairman and chief executive of Disney who had been rumored to be considering a run for president, will continue with the combined firm through 2021.
The announcement takes two media and entertainments titans and, after a period of negotiating chess, essentially divides up territory between them. Iger will lead the legacy-entertainment charge against a slew of new competitors, while Murdoch will attempt to fend off the challenge on another front, as the business of news and live programming face challenges from digital upstarts.
Each side sought to paint their business as stronger because of the moves.
“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,” Iger said in a statement Thursday morning. “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.”
