December 13, 2017
The Walt Disney Company announced its intention to acquire 21st Century Fox for $52.4 billion, a deal that would significantly reshape the media landscape.
Burbank, United States | The Walt Disney Company
On December 13, 2017, The Walt Disney Company announced its intention to acquire a significant portion of 21st Century Fox in a landmark deal valued at approximately $52.4 billion. This acquisition was poised to reshape the media landscape by consolidating two of the largest entertainment companies in the world.
Before the announcement, both Disney and 21st Century Fox were major players in the global media and entertainment industry. Disney, known for its iconic characters and franchises, had been expanding its reach through strategic acquisitions, such as Pixar, Marvel, and Lucasfilm. 21st Century Fox, on the other hand, was a powerhouse in film and television production, owning a vast array of assets including the 20th Century Fox film studio, Fox Television Group, and a significant stake in international television networks.
Assets Acquired: Disney’s acquisition included 21st Century Fox’s film and television studios, cable entertainment networks, and international TV businesses. Notably, this included popular franchises such as “Avatar,” “X-Men,” and “The Simpsons,” as well as networks like FX and National Geographic.
Exclusions: The deal did not include Fox News Channel, Fox Business Network, FS1, FS2, and the Big Ten Network, which were spun off into a new entity, Fox Corporation.
Strategic Goals: The acquisition aimed to bolster Disney’s content portfolio, enhance its direct-to-consumer offerings, and strengthen its position against emerging competitors like Netflix and Amazon. It was also seen as a move to gain more control over Hulu, as Disney increased its stake in the streaming service.
The announcement marked a significant shift in the media industry, highlighting the trend of consolidation among major entertainment companies. It underscored the growing importance of content ownership and distribution in the digital age, as companies sought to adapt to changing consumer behaviors and the rise of streaming services.
Regulatory Approval: The deal required approval from regulatory bodies in various countries, including the United States. It faced scrutiny over potential antitrust issues but was ultimately approved, with the acquisition completed on March 20, 2019.
Industry Impact: The acquisition intensified competition in the media sector, prompting other companies to pursue mergers and acquisitions to remain competitive. It also led to significant restructuring within Disney and the broader industry.
Cultural Impact: The merger brought together beloved franchises under one roof, creating new opportunities for cross-franchise storytelling and content creation. It also raised concerns about media diversity and the concentration of creative power.
In summary, Disney’s announcement to acquire 21st Century Fox was a pivotal moment in media history, reflecting broader trends of consolidation and the strategic importance of content in the digital era.
Source: en.wikipedia.org