Disney clinches deal Fox entertainments

Broadcasting giant Sky is set to have a new owner after Walt Disney sealed a $52.4 billion takeover of 21st Century Fox's entertainment assets.
By The Newsroom
Published 14th Dec 2017, 14:42 BST
Updated 14th Dec 2017, 14:45 BST
Star Wars: The Last Jedi..L to R: Rey (Daisy Ridley) and Luke Skywalker (Mark Hamill)..Photo: Jonathan Olley..©2017 Lucasfilm Ltd. All Rights Reserved.Star Wars: The Last Jedi..L to R: Rey (Daisy Ridley) and Luke Skywalker (Mark Hamill)..Photo: Jonathan Olley..©2017 Lucasfilm Ltd. All Rights Reserved.
Star Wars: The Last Jedi..L to R: Rey (Daisy Ridley) and Luke Skywalker (Mark Hamill)..Photo: Jonathan Olley..©2017 Lucasfilm Ltd. All Rights Reserved.

The move will see Disney, which this week launches the latest Star Wars film, snap up a significant slice of Rupert Murdoch’s media empire, including its film and television studios, cable entertainment networks and international TV businesses such as its 39 per cent stake in Sky.

As part of the deal, Disney will take on $13.7 billion of debt, with shareholders in 21st Century Fox receiving 0.2745 Disney shares for each Fox share.

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It means a wave of high-profile brands, TV stations and shows will fall into Disney’s hands, from X-Men, Avatar and the Simpsons to FX Networks and National Geographic.

The entertainment giant will also seize control of Fox Searchlight Pictures and Fox 2000, Fox Sports Regional Networks, Fox Networks Group International, Star India and Fox’s interests in Hulu, Tata Sky and Endemol Shine Group.

Fox said it will press ahead with attempts to buy the 61 per cent of broadcaster Sky it does not already own before the Disney deal closes. Despite speculation the takeover would see Fox chief executive James Murdoch installed as the boss of Disney, the company stressed that Bob Iger will remain chairman and CEO until 2021.

Mr Iger said: “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.

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“We’re honoured 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.”

Shares in Sky took a turn for the worse following the announcement, sinking more than 1 per cent.

Related topics:DisneyRupert MurdochSky