Fox to sell film and TV assets to Disney

Disney's Iger Says Fox Deal Creates Great Global Company

Disney's Iger Says Fox Deal Creates Great Global Company

Greenfield believes that Disney adding Fox's movie studios "makes flawless sense" from a business perspective, but that it also carries with it meaningful regulatory risk considering Disney is already so dominant in that space, owning not just its titular studio but also others like Lucas Films, Marvel and Pixar.

Walt Disney Co on Thursday agreed to buy film, television and global businesses from Rupert Murdoch's Twenty-First Century Fox Inc for $52.4 billion in stock. Disney's stock gained 0.8% ahead of the open. Just before the transaction closes, Fox says it will spin off the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network into a newly-created public company, with current Fox shareholders retaining a stake in it.

After weeks of speculation, The Walt Disney Company has finally successfully acquired Rupert Murdoch's 21st Century Fox for $52.4bn.

Disney is buying a huge chunk of 21st Century Fox in a deal that promises to reshape the media industry and help the entertainment giant fend off digital rivals such as Netflix.

Disney chairman and CEO Robert Iger, 66, has been set to exit his post in 2019, but amid the deal, he has agreed to extend his contract through the end of 2021.

One of the reasons Disney already dominates the entertainment landscape is because of big acquisitions under CEO Bob Iger - Pixar, Marvel and most recently Lucasfilm.

Shares in both Disney and Fox were up almost 1 percent in premarket trading. Comcast and Time Warner also have stakes in Hulu.

By super-sizing its library of intellectual property, Disney may be able to more easily brush off concerns surrounding subscriber losses at its media networks unit, in particular at premium sports cable network ESPN. In the deal, it acquires Fox's rights to some Marvel movies and Avatar sequels as it gears up to launch a streaming video service meant to compete with Netflix and Amazon.

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