Disney to acquire 21st Century Fox in $52 bn stock deal

In one of the largest entertainment acquisitions, Disney is buying Twenty-First Century Fox in a $52.4 billion deal in stock.

The Walt Disney Company and Twenty-First Century Fox Inc announced the details on Thursday.

Under the deal, Disney will also acquire the Twentieth Century Fox Film and Television studios, along with cable and international TV businesses, read a joint statement issued by both the studios.

The acquisition of these complementary assets will allow Disney to create more appealing content, build more direct relationships with consumers around the world and deliver a more compelling entertainment experience to consumers wherever and however they choose.

Prior to the acquisition, 21st Century 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.

Under the terms of the agreement, shareholders of 21st Century Fox will receive 0.2745 Disney shares for each 21st Century Fox share they hold (subject to adjustment).

The exchange ratio was set based on a 30-day volume weighted average price of Disney stock. Disney will also assume approximately $13.7 billion of net debt of 21st Century Fox.

The acquisition price implies a total equity value of approximately $52.4 billion and a total transaction value of approximately $66.1 billion for the business to be acquired by Disney, which includes consolidated assets along with a number of equity investments.

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.

"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," said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company.

Rupert Murdoch, Executive Chairman of 21st Century Fox, said: "We are extremely proud of all that we have built at 21st 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."

Iger will continue as Chairman and Chief Executive Officer of The Walt Disney Company through the end of calendar year 2021.

The agreement also provides Disney with the opportunity to reunite the "X-Men", "Fantastic Four" and "Deadpool" with the Marvel family under one roof and create richer, more complex worlds of inter-related characters and stories that audiences have shown they love.

--IANS

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