BROADCASTING giant Sky is set for new ownership after Walt Disney launched a $52.4 billion (£39 billion) takeover of 21st Century Fox’s entertainment assets.
In a major industry shake-up, Disney has swooped for a large slice of Rupert Murdoch’s media empire, including Fox’s film and television studios, cable entertainment networks and international TV businesses such as its 39 per cent stake in Sky.
If backed by regulators and shareholders, it would reinforce Disney’s position as one of the world’s biggest media companies and help defend its dominance from the rise of video-streaming services and the growing threat posed by Amazon and Google.
The move will see a wave of high-profile brands, TV stations and shows fall into Disney’s hands, from Avatar and the Simpsons to FX Networks and National Geographic.
Marvel’s X-Men, Fantastic Four and Deadpool will be reunited with the Avengers and the Guardians Of The Galaxy under the Disney banner.
In a call with investors, Rupert Murdoch defended the deal, saying: “We know a lot of you are wondering ‘why did they come to such a momentous decision? Are we retreating?’ Absolutely not. We are pivoting at a pivotal moment.”
Disney will seize control of Fox Searchlight Pictures and Fox 2000, Fox Sports Regional Networks, Fox Networks Group International, Star India and Fox’s interests in Hulu, Tata Sky and Endemol Shine Group.
Fox will create a new company, spanning the Fox News Channel, Fox Business Network, Fox Broadcasting Company, Fox Sports, Fox Television Stations Group, sports cable networks FS1, FS2, Fox Deportes and Big Ten Network (BTN), the firm’s studio lot in Los Angeles and equity investment in Roku.
As part of the announcement, Fox stressed it would press ahead with attempts to buy the 61 per cent of broadcaster Sky it does not already own before the Disney deal closes in 12 to 18 months time.
Despite speculation the takeover would see Fox chief executive and Sky chairman James Murdoch installed as the boss of Disney, the entertainment giant stressed that Bob Iger would remain chairman and CEO until 2021.
Iger said: “James and I will be talking over the next couple of months. He will be integral to the integration process. He and I will be discussing whether there is a role for him or not at our company.”
Asked whether Sky News had a future under Disney’s ownership, he said: “Absolutely. All of Sky has a future. We obviously will look at the overlap between the business that are similar.”
James Gunn, the director of the Guardians Of The Galaxy films, celebrated the news on Twitter, writing: “While there are many aspects to Disney’s acquisition of 21st Century Fox’s assets, I am personally incredibly happy about it, for obvious reason. Welcome home, old friends.”
Disney will also take ownership of the Avatar franchise, which has four sequels in the pipeline from director James Cameron.
As part of the deal, Disney will take on 13.7 billion US dollars (£10.2 billion) of debt, with shareholders in 21st Century Fox receiving 0.2745 Disney shares for each Fox share. Taking debt into account, the takeover is valued at a larger 66.1 billion US dollars (£49.3 billion).
Disney was left as the frontrunner to secure the Fox assets after rival suitor Comcast pulled out of the race on Monday.
Iger added: “We’re honoured and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building, and we’re excited about this extraordinary opportunity to significantly increase our portfolio of well-loved franchises and branded content to greatly enhance our growing direct-to-consumer offerings.”
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