Fox & Disney Shareholders Approve $71.3 Billion Dollar Acquisition Deal

Calvin Saunders
July 28, 2018

That deal was almost derailed by Comcast as a rival suitor for Fox, but Comcast's recent surrender paved the way for Disney's final victory.

"Combining the 21CF businesses with Disney and establishing new "Fox" will unlock significant value for our shareholders", said 21st Century Fox CEO Rupert Murdoch, in a statement.

The shareholders' approval puts the historic Disney-Fox deal back on track, after it suffered setbacks following a heated bidding war with Comcast, which derailed talks with its $65 billion cash bid.

The two companies continue to vie for satellite broadcaster Sky. Meeting in NY, a majority of the Disney shareholders approved the deal after only 8 minutes, with the package including Fox's 39 percent stake in the European pay TV company Sky which Comcast is still pursuing.

Fox Broadcasting, Fox News and most of the Fox Sports assets will be spun off into a new company, New Fox, owned by 21st Century Fox shareholders and operated by the Murdoch family. Regardless, neither company was swayed by this argument, and the transaction is set to complete sometime in the first half of 2019.

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Netflix announced it will spend over $8 billion this year to boost its program inventory to better compete with Disney's new service, scheduled to launch next year.

How do you feel about the Disney and Fox merger? The combined company is expected to have a near stranglehold on the box office.

Gaining control of Fox's entertainment assets would give Disney full control of highly lucrative franchises like Avatar and Marvel (Disney only owns part of Marvel, currently). During a brief question and answer period, one said Disney overpaid by as much as US$10 billion. In other words, don't expect the X-Men and the Fantastic Four to suddenly show up in Avengers 4.

The deal does not include Fox News, the Fox broadcast network, television stations, Fox Sports 1 and Fox Sports 2. Disney must still clear antitrust hurdles from other governments around the globe, including China and the European Union.

Other reports by MaliBehiribAe

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