Register to get unlimited Level 2

Walt Disney to buy 21st Century Fox assets in $52.4bn deal

By Michele Maatouk

Date: Thursday 14 Dec 2017

Walt Disney to buy 21st Century Fox assets in $52.4bn deal

(ShareCast News) - Walt Disney has (finally) announced an agreement to buy the entertainment assets of 21st Century Fox in a deal worth around $52.4bn.
Under the terms of the agreement, 21st Century Fox shareholders will receive 0.2745 Disney shares for each of their shares. In addition, Disney will assume around $13.7bn of 21st Century Fox net debt.

The transaction includes 21st Century's film and television studios, cable entertainment networks and international TV businesses, with UK satellite broadcaster Sky in the frame.

Disney chairman and chief executive Robert A. 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.

"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."

The deal is expected to yield at least $2bn in cost savings from efficiencies realised through the combination of the businesses, and to be accretive to earnings before the impact of purchase accounting for the second fiscal year after the close of the transaction.

Iger has agreed to stay on as chairman and chief executive officer of The Walt Disney Company through the end of calendar year 2021 in order to oversee the integration of the businesses.

..

Email this article to a friend

or share it with one of these popular networks:


Top of Page