In a landmark deal, Walt Disney will buy Rupert Murdoch’s 21st Century Fox for $66 billion. This business deal will have huge consequences on the global media landscape once it is approved by regulators. If the deal comes through, it will make Disney the world’s largest media company. Everything from Mickey Mouse to Han Solo will come under one roof.
According to Disney, the deal will also include Fox’s 39 percent stake in Sky, the pan-European broadcaster, and the 20th Century Fox movie studio.
According to the rules of the agreement, Disney will pay $52.4 billion in stock, which includes $13.7bn in debt. The estimated transaction value is projected at $66.1 billion. 21st Century Fox shareholders will get 0.2745 in new Disney shares for each 21st Century Fox share they hold. 25 percent of the combined company will be owned by Fox shareholders.
The contract, according to Disney’s chief executive Bob Iger, will be extended until 2021. “We’re honored and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building,” he said. He added that the deal will, “significantly increase our portfolio of well-loved franchises and branded content to greatly enhance our growing direct-to-consumer offerings”.
Murdoch said, “I’m convinced that this combination, under Bob Iger’s leadership, will be one of the greatest companies in the world. I’m grateful and encouraged that Bob has agreed to stay on, and is committed to succeeding with a combined team that is second to none.”Read More