- “New Disney” valued $51.57 per share
- Disney set to accelerate content strategy
- $10bn in annual revenue for expected in 2019
Disney officially owns 21st Century Fox after more than a year of negotiations and a $71.3 billion exchange.
The company announced yesterday the merger was effective immediately, growing Disney’s assets to include 21st Century Fox’s film and TV studios, an additional 30% stake in streaming service Hulu, US cable channels FX and National Geographic as well as Indian media conglomerate Star India.
The Walt Disney Company chairman and chief executive Robert Iger said: “This is an extraordinary and historic moment for us, one that will create significant long-term value for our company and our shareholders.
“Combining Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the preeminent global entertainment company, well positioned to lead in an incredibly dynamic and transformative era.”
The acquisition of 21st Century Fox’s global collection of businesses and franchises including Marvel, Avatar, The Simpsons and Star Wars could likely be integrated into Disney’s new streaming service Disney+ set to launch later this year.
Iger announced Disney’s plans to become consumers top choice when seeking high-quality content and entertainment options.
He described the “new Disney” as an “unprecedented collection of high-quality creative content, stellar talent and cutting edge-technologies” that are expected to bring in around $10 billion in annual revenue this year in expanding Disney’s content strategy globally.
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Disney announced the merger was a strategic move to “meet growing consumer demand and increase its international footprint and expand its direct-to-consumer offerings.”
Disney’s assets will now also include:
- ESPN+ for sports enthusiasts
- Disney+ set to launch in late 2019
- Combined ownership stake in Hulu
- Twentieth Century Fox
- Fox Searchlight Pictures
- Fox 2000 Pictures
- Fox Family and Fox Animation
- Tata Sky
- Endemol Shine Group
- Big Ten Network
- Fox’s entire portfolio of news, sport, business, TV and cable channels
In its statement to the press, Disney confirmed: “[It] is also acquiring approximately $19.8 billion of cash and assuming approximately $19.2 billion of debt of 21st Century Fox in the acquisition. The acquisition price implies a total equity value of approximately $71 billion and a total transaction value of approximately $71 billion.”
It also announced the value per share is approximately $51.57.
Murdoch the most powerful media mogul?
Rupert Murdoch founded 21st Century Fox and ran it for nearly 39 years, he is now estimated to be worth $19.3 billion, according to Forbes.
Murdoch is co-chairman of the new Fox Corporation which is now valued at $18.4 billion after the merger was completed yesterday and is worth more than $4.3 billion from when the deal was first announced in December 2017.
Murdoch will have no official position at Disney however Forbes estimated his 17% stake in the company was worth $13.3 billion earlier this month.
Assuming he took all stock from the Disney deal, Murdoch now owns $10.5 billion worth of Disney stock. His 39% stake of the new Fox Corporation is worth $4.2 billion. The rest of his net worth is made up of his shares in News Corp.
The Murdoch empire will continue to grow Bloomberg experts suggested: “It’s likely the [Murdoch] children, some already well known, will become even more prominent.” Lachlan Murdoch will be chief executive of Fox’s news sector under the Disney ownership.
Rupert Murdoch sent a note to his staff ahead of the official take over.
He said: “When this transaction is complete, I anticipate tremendous opportunity for our businesses and colleagues alike.
“21st Century Fox’s film and TV studios will align with Disney to maximize their impact with compelling storytelling, global reach and scale and an unsurpassed range of consumer relationships, extensive brands and breakthrough over-the-top media capabilities.”