Fox is Now Owned by Disney: Deal Gets Green Light to Proceed
- Author: Marlene Weaver Jul 28, 2018,
Jul 28, 2018, 7:30
Via CNBC, the long-awaited Disney and Fox deal has already received conditional approval from the government as well, but it won't be an instantaneous merger. Disney expects to pay a total of about $35.7 billion in cash and issue approximately 343 million New Disney shares to 21st Century Fox stockholders.
This move came after Comcast made an aggressive $65 billion all-cash offer for the 21st Century Fox assets, forcing Disney to increase its initial $52.4 billion purchase for the Fox acquisition.
Results were announced at a special shareholders' meeting in NY.
Fox will separate the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network and its sports channels FS1, FS2, and the Big Ten Network into a newly listed company that it will spin off to its shareholders. Regardless, neither company was swayed by this argument, and the transaction is set to complete sometime in the first half of 2019. The proposals included the adoption by 21st Century Fox stockholders of the merger agreement with Disney (the "Disney Merger Agreement") and the distribution merger agreement for the spin-off of new "Fox". During a brief question and answer period, one said Disney overpaid by as much as US$10 billion.
It's worth noting that Disney is launching its own streaming service next year, and the Fox library of shows and films will probably be a part of that as well. The deal will also give Disney 60% ownership of Hulu. The combined company is expected to have a near stranglehold on the box office.
Fox has produced several movies based on characters licensed from Marvel, including the X-Men and Wolverine pictures and two "Deadpool" movies.
Disney still needs deal approval from more than a dozen countries, including China, Russia and regulators from the European Union.