Disney Agrees To Buy 21st Century Fox Assets For $52.4 Billion

[FunkyMike]

After weeks of mounting speculation - and a rumored competing bids by rivals Comcast Corp. and Verizon that never materialized - Disney and 21st Century Fox announced early Thursday that the former would acquire most of the latter's entertainment assets in a deal worth $52.4 billion, according to the official press release.

 

Here's what Disney is buying, according to the release:

Quote

Combining with Disney are 21st Century Fox’s critically acclaimed film production businesses, including Twentieth Century Fox, Fox Searchlight Pictures and Fox 2000, which together offer diverse and compelling storytelling businesses and are the homes of Avatar, X-Men, Fantastic Four and Deadpool, as well as The Grand Budapest Hotel, Hidden Figures, Gone Girl, The Shape of Water and The Martian—and its storied television creative units, Twentieth Century Fox Television, FX Productions and Fox21, which have brought The Americans, This Is Us, Modern Family, The Simpsons and so many more hit TV series to viewers across the globe. Disney will also acquire FX Networks, National Geographic Partners, Fox Sports Regional Networks, Fox Networks Group International, Star India and Fox’s interests in Hulu, Sky plc, Tata Sky and Endemol Shine Group.

Fox will then spin off the Fox Broadcasting network, Fox News, Fox Business, FS1, FS2 and Big Ten Network to its shareholders into a newly listed company. Under the terms of the agreement, shareholders of 21st Century Fox will receive 0.2745 Disney shares for each 21st Century Fox shares they hold. Disney will also assume approximately $13.7 billion of net debt of 21st Century Fox.

 

 

 

 

 

Meanwhile, Robert Iger, who was supposed to retire at the end of next year, will stay on to lead the Disney until at least 2021 (at this point, the long-time CEO, who has blown through many planned retirement dates, might lead the House of Mouse for the remainder of his natural life).

 

The deal is the largest ever in Disney's history, and comes just a day before the release of "The Last Jedi" the latest installment in its lucrative "Star Wars" series - a franchise it acquired a few years back.

 

Fox will keep its studio plot in LA and much of its real-estate holdings.

 

http://www.zerohedge.com/news/2017-12-14/disney-agrees-buy-21st-century-fox-assets-524-billion

[Jim K Global Moderator]

Yea...not thrilled at all by this. Believe it will negatively affect the theater, online services (like Netflix), creator content, etc... when one company owns like over 30% (saw that figure somewhere) of the market.

[Seahorsepip Veteran]

Oh damn, considering that Disney planned to move it's content from Netflix to their own service (Did they do this already?), are they going to move all the FOX content from Netflix to that service too?

Disney will be able to offer an online service with a massive amount of content all made by themselves at this rate 

[patseguin Global Moderator]

30 minutes ago, Jim K said:

Yea...not thrilled at all by this. Believe it will negatively affect the theater, online services (like Netflix), creator content, etc... when one company owns like over 30% (saw that figure somewhere) of the market.

Well, I could care less about theater these days. Movie after movie are big disappointments and every other actor is trying to make some political statement. I honestly don't think this will hurt Netflix at all though. They are making quality original content and still have an extensive library. Maybe they'll lower their prices to compete. ;-)

[FunkyMike]

(Courtesy of Bloomberg)

 

Rupert Murdoch, the longtime chairman of 21st Century Fox, 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."

 

As the Financial Times pointed out, the deal will end Murdoch’s long association with Hollywood and represents a division between the media mogul and his youngest son, James, Fox’s chief executive. The two companies did not comment on his future but James is likely to leave Fox upon completion of the sale.

 

 

Disney said it would seek $2 billion in cost savings from the deal. It expects Fox to complete its takeover of pan-European TV group Sky by the end of the first half of next year. Disney will end up as the ultimate owner of Sky as long as that transaction completes before Disney’s deal.

 

According to the New York Times, Disney, which owns ABC and ESPN, hopes 21st Century will supercharge its plans to introduce two Netflix-style streaming services. The company's first major streaming effort, ESPN Plus, will arrive in the spring.

 

A second and still unnamed offering, built around the company's Disney, Marvel, Lucasfilm and Pixar brands, will likely be introduced late next year. Both Fox and Disney already own stakes in Hulu, a paid streaming service that already includes ABC content. Iger is personally buying out Fox's minority stake in Hulu.

[+Mirumir Subscriber¹]

If the six largest media conglomerates merged into One Big Hollywood Inc. Company, nothing would've changed.

[DrunknMunky Veteran]

Well I'm happy Marvel gets back Deadpool, F4 and X-Men so they can finally make a decent movie for once, but I'm worried Disney will kill off Simpsons

[Jim K Global Moderator]

38 minutes ago, patseguin said:

Well, I could care less about theater these days. Movie after movie are big disappointments and every other actor is trying to make some political statement. I honestly don't think this will hurt Netflix at all though. They are making quality original content and still have an extensive library. Maybe they'll lower their prices to compete. ;-)

Well, I do not either...so much (except my once a year Star Wars venture ..like tonight) ... but a lot of people do. Disney has already stated it will pull its content from Netflix ...  Fox has a huge catalog which I do not doubt will eventually get pulled.

 

Wall garden anyone?

[DrunknMunky Veteran]

2 minutes ago, Jim K said:

Well, I do not either...so much (except my once a year Star Wars venture ..like tonight) ... but a lot of people do. Disney has already stated it will pull its content from Netflix ...  Fox has a huge catalog which I do not doubt will eventually get pulled.

 

Wall garden anyone?

But at the same time they've gave Punisher a second season, so it doesn't look like everything is being pulled. Likewise for DD, JJ, Luke Cage etc etc.

[Jim K Global Moderator]

15 minutes ago, Andrew said:

But at the same time they've gave Punisher a second season, so it doesn't look like everything is being pulled.

Yea...and Jessica Jones...etc. Though I question future content ... which hadn't already been licensed for "Netflix Original Content" ... and how long past agreements/licensing with Marvel are good for. (if that makes sense?)

[oldtimefighter]

30 minutes ago, patseguin said:

Well, I could care less about theater these days. Movie after movie are big disappointments and every other actor is trying to make some political statement. I honestly don't think this will hurt Netflix at all though. They are making quality original content and still have an extensive library. Maybe they'll lower their prices to compete. ;-)

Huh? Theses days? Actors and actress having been making political statements for like forever.  Why are you even paying attention to what they are doing in their personal lives? Stop the celebrity gawking! There is a lot of quality movies out there if you venture out from summer blockbusters and romantic comedies. Do you watch Netflix? The same actors and actresses star in their shows. LOL

 

8 minutes ago, Andrew said:

Well I'm happy Marvel gets back Deadpool, F4 and X-Men so they can finally make a decent movie for once, but I'm worried Disney will kill off Simpsons

What was wrong with Deadpool? Disney probably will ruin it.

 

3 minutes ago, Andrew said:

But at the same time they've gave Punisher a second season, so it doesn't look like everything is being pulled. Likewise for DD, JJ, Luke Cage etc etc.

Disney still has a contract with Netflix that goes to 2018 so no everything can't be pulled.

[Jim K Global Moderator]

9 minutes ago, oldtimefighter said:

Disney still has a contract with Netflix that goes to 2018 so no everything can't be pulled.

Right...and Disney's streaming service is set to go live ... in what ... 2019?  I believe, at least with online content, that will be when consumers will start to feel the full ramifications of, not only this deal, but other Disney deals ... resulting in an increasingly fractured landscape.

 

Anyway...I guess it is what it is.

[DocM]

2 hours ago, Andrew said:

But at the same time they've gave Punisher a second season, so it doesn't look like everything is being pulled. Likewise for DD, JJ, Luke Cage etc etc.

 

2 hours ago, Jim K said:

Yea...and Jessica Jones...etc. Though I question future content ... which hadn't already been licensed for "Netflix Original Content" ... and how long past agreements/licensing with Marvel are good for. (if that makes sense?)

Those are co-productions with Marvel, which itself is a subdivision of Disney. The question becomes, will Marvel pull those series into the new Disney streaming channel once it goes live?  Likely.

 

Of course, this merger may not go through at all because it needs government approval under the anti-monopoly laws.  A clue as to how the govt. now sees these large media mergers is that Department of Justice has gone to court to block the AT&T + Time-Warner deal, calling it monopolistic.

 

Also: Fox News, Fox Business, Fox Sports and their network affiliates are not part of the deal.

[seta-san]

the only good thing that can possibly come from this is the release of the theatrical version of the original starwars trilogy. it's too late for xmen in the marvel cinematic universe.

[ctebah]

1 minute ago, seta-san said:

it's too late for xmen in the marvel cinematic universe.

Actually, it's perfect timing.  

 

Avengers are nearing the end, they got one, maybe two movies tops and then they will move on.  Introducing X-men can bring needed continuity.  

[DConnell Member]

10 minutes ago, seta-san said:

 it's too late for xmen in the marvel cinematic universe.

Well, the Inhumans kind of fill the niche mutants normally do, but if there's room for both on Earth 616 then I'd say there's room for both in the Cinematic Universe as well.

 

I'm not thrilled by this purchase - just another step in Disney's push to get a monopoly on popular culture/kids' imaginations.

[DrunknMunky Veteran]

1 hour ago, ctebah said:

Actually, it's perfect timing.  

 

Avengers are nearing the end, they got one, maybe two movies tops and then they will move on.  Introducing X-men can bring needed continuity.  

Avengers 4 ends the current story arc, but Kevin Feige announced last month that Marvel has 20 further movies planned.

 

With the Fox deal, it would allow Galactus to be the next big villain and include F4 / Silver Surfer.

[ctebah]

26 minutes ago, Andrew said:

With the Fox deal, it would allow Galactus to be the next big villain and include F4 / Silver Surfer.

I really hope that to be true as I was starting to wonder who the next universe-level bad guy will be.  

[DConnell Member]

3 minutes ago, ctebah said:

I really hope that to be true as I was starting to wonder who the next universe-level bad guy will be.  

Dark Squirrel Girl.  It'll mean the end of everything since SG is undefeatable!

[ds420]

Let's hope Disney brings back Futurama, the greatest show ever.

[FloatingFatMan]

5 hours ago, Seahorsepip said:

Oh damn, considering that Disney planned to move it's content from Netflix to their own service (Did they do this already?), are they going to move all the FOX content from Netflix to that service too?

Disney will be able to offer an online service with a massive amount of content all made by themselves at this rate 

I suspect Disney will just buy Netflix, tbh...

[FloatingFatMan]

4 hours ago, Andrew said:

Well I'm happy Marvel gets back Deadpool, F4 and X-Men so they can finally make a decent movie for once, but I'm worried Disney will kill off Simpsons

Killing off the Simpsons would be a bonus. That show stopped being funny over a decade ago.

 

I'm more worried they'll reboot Deadpool with another actor, though I'm glad they've got X-Men and Spidey back.

[DrunknMunky Veteran]

1 minute ago, FloatingFatMan said:

Killing off the Simpsons would be a bonus. That show stopped being funny over a decade ago.

 

I'm more worried they'll reboot Deadpool with another actor, though I'm glad they've got X-Men and Spidey back.

It's not as funny any more but it will still be sad to see it cancelled.

 

Also Spider-Man is still with Sony and is not included in this sale. Neither is Hulk, who is locked down at Universal.

[FloatingFatMan]

AH, my bad on Spidey. I've never really cared much for Hulk.

[Louisifer]

4 hours ago, Andrew said:

Well I'm happy Marvel gets back Deadpool, F4 and X-Men so they can finally make a decent movie for once, but I'm worried Disney will kill off Simpsons

I wouldn't worry about the Simpsons, about 10 years ago I watched an interview and one question was about ending the show, the cast said they've talked about ending it a lot of times but they don't know how to properly end it. It'll probably run till enough of the cast dies.