The Walt Disney Company have announced the acquisition of 21st Century Fox.
Disney is acquiring approximately $19.8bn (£15.1bn) of cash and assuming approximately $19.2bn (£14.7bn) of debt of 21st Century Fox in the acquisition. The deal price implies a total equity value of approximately $71bn (£54.3m).
“This is an extraordinary and historic moment for us—one that will create significant long-term value for our company and our shareholders,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company.
“Combining Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the preeminent global entertainment company, well positioned to lead in an incredibly dynamic and transformative era.”
The acquisition of 21st Century Fox’s iconic collection of businesses and franchises will allow Disney to provide more high-quality content and entertainment options to meet growing consumer demand. It is also in preparation for their own streaming service which will look to take on Amazon and Netflix in the years to come.
The deal includes 21st Century Fox’s film production businesses, including Twentieth Century Fox, Fox Searchlight Pictures, Fox 2000 Pictures, Fox Family, Fox Animation and Fox’s television creative units (Twentieth Century Fox Television, FX Productions and Fox21)
As part of the deal, Disney now own FX Networks, National Geographic Partners, Fox Networks Group International, Star India, and Fox’s interests in Hulu, Tata Sky and Endemol Shine Group.