USA: Disney Plans to Acquire Majority of 21st Century Fox‘ Businesses – Bob Iger to Remain Disney’s CEO and Chairman through the end of 2021

As The Walt Disney Company announced in an official statement yesterday, the global entertainment group and 21^st Century Fox have entered into a definitive agreement for Disney to acquire the majority of Rupert Murdoch’s company’s businesses at a total transaction volume of approx. 56 billion Euro (66.1 billion US Dollar), split up into an equity stake of 44.5 billion Euro (52.4 billion US Dollar) and a net debt of 11.6 billion Euro (13.7 billion US Dollar), subject to adjustment. The business units sold by the Fox Group to Disney include the Twentieth Century Fox film and television studios, several (partly international) cable TV channels, the Hulu streaming platform and Fox’ stake in the European pay-TV chain Sky (39 percent). Shareholders of 21^st Century Fox will receive 0.2745 Disney shares for each 21^st Century Fox share. With the acquisition, Disney also acquires popular IP brands such as “Avatar”, “X-Men” and “The Simpsons”.

“The acquisition of this stellar collection of businesses from 21^st 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, and 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. The deal will also substantially expand our international reach, allowing us to offer world-class storytelling and innovative distribution platforms to more consumers in key markets around the world,” said Robert A. Iger, Chairman and CEO of the Walt Disney Company. Rupert Murdoch, Executive Chairman of 21^st Century Fox, added: “We are extremely proud of all that we have built at 21^st Century Fox, and I firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace in what is an exciting and dynamic industry […]”, said Murdoch.

At the request of both 21^st Century Fox and the Disney Board of Directors, Bob Iger has agreed to continue as Disney’s Chairman and CEO through the end of calendar year 2021 (c.f. EAP News from March 24^th, 2017). (eap)