Disney acquires 21st Century Fox for $52 billion

The deal encompasses the 20th Century Fox movie studio, the television production arm of the 20th Century Fox Television company, Fox-owned cable networks (including FX and National Geographic) and the company's stakes in international networks such as Star TV and Sky.

The giant Walt Disney has acquired the film and television studios 21st Century Fox in a historic deal valued at $52 billion (€44.3 billion). The deal encompasses the 20th Century Fox movie studio, the television production arm of the 20th Century Fox Television company, Fox-owned cable networks (including FX and National Geographic) and the company's stakes in international networks such as Star TV and Sky.

Disney will also gain majority control of Hulu, whose 30% stake, added to the one Disney already had, positions it to reach 60% of its shares. For their part, Comcast and Time Warner will see their stake reduced to 30% and 10% share, respectively.

With this operation, the large multimedia conglomerate Fox is letting go of a drag on the entertainment world in order to focus on the information and sports business, keeping Fox, Fox Sports, and the Fox News and Fox Business brands on the air.

As a result of this agreement, Disney CEO Bob Iger will remain as CEO of the Walt Disney Company until 2021, although it has not been announced who will be his successor when he steps down in four years.

Twenty-First Century Fox was one of two companies formed from the 2013 split of the publishing assets of News Corporation, founded by Rupert Murdoch in 1979. 21st Century Fox, now in the hands of Disney, is the legal successor to News Corporation, and deals primarily with the film and television industries. It is currently the fourth largest media conglomerate in the world (after Comcast, The Walt Disney Company itself and Time Warner). The other company, News Corp, focuses its interests on media.

The sale, which only affects the first of these companies, will be carried out through a share exchange, after which the shareholders of Twenty-First Century Fox will have around 25% of the capital of the new Disney. Disney's entry into 21st Century Fox reinforces its position as a global entertainment company with local production and consumer services in high-growth regions, including a richer range of local, national and global sporting events that ESPN can make available to fans around the world.

Disney's international reach would expand tremendously with the addition of Sky, which serves nearly 23 million homes in the United Kingdom, Ireland, Germany, Austria and Italy; Fox Networks International, with more than 350 channels in 170 countries; and Star India, which operates 69 channels reaching 720 million viewers per month in India and more than 100 countries.

Prior to the closing of the transaction, 21st Century Fox is anticipated to seek to complete its planned acquisition of the 61% of Sky it does not already own. Sky is one of Europe's most successful pay-TV and creative companies with high-quality, direct, innovative consumer platforms, resonant brands and a strong and respected leadership team. 21st Century Fox remains fully committed to completing Sky's current offering and anticipates that, subject to necessary regulatory consents, the transaction will close on June 30, 2018. Assuming 21st Century Fox completes its acquisition of Sky prior to the closing of the transaction, the Walt Disney Company would assume full ownership of Sky, including the assumption of its outstanding debt, upon closing.