Disney to acquire 21st Century Fox for over $52Bn
Walt Disney Company has announced in a statement it will acquire most of 21st Century Fox in a stock deal worth $52.4 billion. Disney will assume $13.7 billion of Fox’s net debt as a part of the agreement, while Fox shareholders will get 0.2745 Disney shares for each share they hold in Fox.
The deal will include Fox’s movie studio 20th Century Fox, National Geographic Partners, FX Networks, Fox Sports Regional Networks, Fox Networks Group International, as well as stakes in Sky, Hulu, Tata Sky and Endemol Shine Group. Meanwhile, Fox’s remaining news and sports businesses will form a new company.
The statement on its website added that after boards of both companies asked Disney CEO Bob Iger to postpone his retirement, he has agreed to remain at the position until 2021 in order to ensure a complete integration of the companies.
“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,” Iger stated. Fox Chairman Rupert Murdoch expressed confidence 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” and added he is “grateful and encouraged” that Iger will stay on as the Disney CEO.