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Disney completes $52 billion Fox acquisition

Takeover aimed at fighting off competition from online advertisers and internet streaming firms

In effort to compete in the rapidly changing media industry, Disney have confirmed that they are to buy the majority of 21st Century Fox from owner, Rupert Murdoch, in a deal worth $52.5bn. 


The deal will give Disney a 39% stake in satellite broadcaster, Sky and the acquisition of many of Fox's current investments, including its film and television studios, regional sports network and international holdings. Fox's remaining assets will form a more news-focused company. 


Current Fox shareholders will be given a 25% stake in the new, bigger Disney group, with the takeover aimed at fighting off competition from online advertisers and internet streaming firms. 


Fox owner, Rupert Murdoch, bullishly stated, ""With today's announcement, we launch the next great leg of our journey. Are we retreating? Absolutely not." 


So, what does $52bn get you? 


Following the buyout, Disney are now owners of some of the highest-grossing movies of all-time; including the original Star Wars movies, Avatar, Deadpool and the Marvel superhero releases.  


In TV, Disney now own The Simpsons and Modern Family, whilst add FX, National Geographic, Tata Sky and Star India to its portfolio. The group will also take a majority stake in Hulu. The video streaming service is partially owned by Time Warner and Comcast. 


According to David Yelland, former editor of The Sun newspaper, the takeover was necessary in Disney's battle to keep up with both China and Silicon Valley. Yelland explained, "In ten years time there'll be two Chinese giants and four US giants and [of the current entertainment companies] the only one that'll survive will be Disney." 


What does the future hold for Fox? 


Lachlan Murdoch, eldest son of Rupert and current Executive Co-Chairman of 21st Century Fox, said "While the merged business is about scale, the new Fox is about returning to our roots as a lean, aggressive, challenger brand." 


As well as retaining its flagship channel, Fox News, the new, smaller group also keeps hold of Fox Sports, Fox Business Network, Fox Broadcasting Company, Fox Television Stations Group, and sports cable networks FS1, FS2, Fox Deportes and Big Ten Network. 


With the deal set to take between 12 and 18 months to complete, investors will keep a keen eye on stock prices over the coming months. Find details of brokers that trade Disney and Fox shares on our homepage and invest today. 

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