Disney’s acquisition over 21 st Century Fox

Disney is one of the most dominant players in the market when it

comes to entertainment and it grew even stronger by completing the
acquisition of 21st Century Fox on 18th April this year after beating
Comcast’s bid of around $65 billion. The deal included acquisition of
20th Century Fox film and television studios, US channels
including FX, Fox Networks Group International, 73% stake in National
Geographic Partners, Star India and 30% stake in on demand video
service Hulu. This means that Disney now owns entire TV and film
library of Fox making Fox a sports and news company now. This deal
amounted to a massive $71.3 billion. After the acquisition, 21st Century
Fox took no time to spin its remaining companies i.e. Fox Broadcasting
Company, Fox Television Stations, Fox News Channel, the Fox Business
Network, FS1, FS2, Fox Deportes, and the Ten Network into Fox
Corporation.

Marvel Cinematic Universe will once again be have access to X-Men and
Fantastic Four characters whose rights were sold by them in the 1990’s
before they were owned by Disney. Disney will also own the characters
such as Deadpool, Predator, Avatar franchise, Alien, Kingsman and a
few more.

“This is an extraordinary and historic moment for us — one that will

create significant long-term value for our company and our
shareholders,” said Bob Iger, the Chairman- CEO of Disney.

The main question that arises is what benefit will Disney get from this?
As per a 2017 regulatory filing, the deal could add around $19 billion to
its revenue and around $1.6 billion to its net income. Also now that
Disney owns a whole lot of characters like Simpsons and Star Wars
franchise it can be expected to launch its own streaming service
Disney+ to take on giants like Amazon Prime and Netflix.