Disney set to buy most of 21st Century Fox

(FinancialPress) — Disney is set to acquire a massive portion of 21st Century Fox for $52.4 billion – a deal that is certain to restructure the media industry as a whole. This give the entertainment giant a fighting chance against opposing digital platforms such as Netflix.

The move is an uncharacteristic one for Rupert Murdoch, a serial investor who is now option out of the game with a big cash-out, after years of building a media empire. For Disney (DIS), the deal bolster its media asset portfolio considerably – one which already carries remarkable weight even before this – and makes it pack a bigger punch in the ongoing battle against streaming services that have managed to take away considerable business volume from traditional cable subscription.

The acquisition emcompasses 21st Century Fox‘s movie studio, regional sports networks, cable channels FX and National Geographic, stake in Hulu and European pay-TV service Sky.

Fox News Channel, Fox Business Network and some national sports networks will be spun out into a new company that will be put in the hands of the company‘s current shareholders.

Bob Iger, chairman and CEO of Disney, has also been announced to remain in seat until the end of 2021. In a statement, he said as follows:

“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. We’re honored and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building.”

In a statement of his own, Murdoch 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.”

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