Walt Disney Co on Thursday agreed to buy film, TV and international
assets from Rupert Murdoch’s Twenty-First Century Fox Inc for $52.4
billion (£39 billion) as Disney seeks greater scale to tackle growing
competition from Netflix and Amazon.com.
Under the terms of the all-stock deal, Disney acquires significant assets from Fox, including the studios that produce the blockbuster Marvel superhero pictures and the “Avatar” franchise, as well as hit TV shows such as “The Simpsons”.
Fox shareholders will receive 0.2745 Disney shares for each share held. This translates to a value of $29.50 per share for the assets that Disney is buying, Reuters calculations based on Disney’s Wednesday market closing price show.
Immediately prior to the acquisition, Fox will separate the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network into a newly listed company that will be spun off to its shareholders.
Disney will also assume about $13.7 billion of Fox’s net debt in the deal.
Through Fox’s stake in the Hulu video streaming service, Disney will assume majority control of one of Netflix Inc’s main competitors. Hulu is also partially owned by Comcast Corp and Time Warner Inc.
Under the terms of the all-stock deal, Disney acquires significant assets from Fox, including the studios that produce the blockbuster Marvel superhero pictures and the “Avatar” franchise, as well as hit TV shows such as “The Simpsons”.
Fox shareholders will receive 0.2745 Disney shares for each share held. This translates to a value of $29.50 per share for the assets that Disney is buying, Reuters calculations based on Disney’s Wednesday market closing price show.
Immediately prior to the acquisition, Fox will separate the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network into a newly listed company that will be spun off to its shareholders.
Disney will also assume about $13.7 billion of Fox’s net debt in the deal.
Through Fox’s stake in the Hulu video streaming service, Disney will assume majority control of one of Netflix Inc’s main competitors. Hulu is also partially owned by Comcast Corp and Time Warner Inc.
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