Disney Buys Fox in Historic $71.3 Billion Deal

Disney Buys Fox in Historic $71.3 Billion Deal

Bloomberg Intelligence Analyst Paul Sweeney told the Business Journal, "Disney's proposed acquisition of 21st Century Fox has weighed on the stock as investors anxious about earnings dilution and potential integration risk if the deal goes through". Completion of the transaction is subject to a number of non-U.S. merger and other regulatory reviews, and other customary closing conditions. According to disney, 99% of the shareholders voted yes.

Fox will keep Fox News, Fox Sports and the Fox broadcasting network as a separate company.

Shareholders of both companies today gave the go-ahead for the move and why wouldn't they?

Friday's votes end a lengthy drama over the Fox assets, and solidify Disney's status as an even bigger Hollywood powerhouse.

Late previous year, Disney revealed its multi-billion dollar plans to buy the majority of Fox's assets, films, and TV shows. So while we've been hearing about the Disney-Fox deal since last fall, it's still just shy of the finish line.

Once completed, the transaction will create a slimmed-down "new Fox" focused on the Fox broadcast TV network, Fox News and some sports operations.

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Fox is still in the running to acquire the remaining outstanding shares of European pay-television operator Sky, although a $34 billion bid by Comcast remains the leading offer.

As a result of the Fox acquisition, Disney will have a controlling stake in Hulu, with Comcast's NBCUniversal and AT&T's Warner Media splitting the rest.

Last week, Comcast dropped its pursuit of Fox's film and television studios, cable networks and worldwide TV businesses.

After prevailing in a bidding war with Comcast, Disney is purchasing the assets, which exclude the Fox News and Fox Business networks. "With their help, we expect the enlarged Disney and new "Fox" companies will be pre-eminent in the entertainment and media industries".

It adds to an already dominant collection of assets owned by Disney that has raked in billions of dollars for the company under CEO Bob Iger's leadership.

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