The Mouse Catches The Fox
Today Disney (DIS) closed its deal to buy Twenty-First Century Fox, completing the deal for $52 billion in stock. The deal is still pending regulatory approval, but if passed it will have a big impact on the entertainment industry. Here are a few points that we took away from the deal.
Disney becomes the majority owner of Hulu.
Hulu is a joint venture between Hulu LLC, Comcast, Time Warner, 21st Century Fox, and The Walt Disney Company. With the close of the Disney and Fox deal Disney will own 60% of Hulu.
Disney acquires the The X-Men, Deadpool, and Fantastic Four properties.
This is a big deal for comic book fans all over the world. Now Marvel which operates under Disney will have control to the movie rights of some of its most iconic names.
Disney acquires the distribution rights to the first Star War films
The first six Star Wars movies were distributed by 21st Century Fox and Fox retained those rights after Disney purchased Lucasfilm. Now those rights will come over to Disney. Will Disney give Star Wars fans what they want, a digital or blu-ray version of the original Star War movies without the added special effects and edits? Probably not.
Disney acquires Avatar
Avatar the highest grossing movie world wide is now with The Walt Disney Company. This is a nice complement to the Pandora: The World of Avatar theme park Disney has built and recently opened. The Avatar Sequel is scheduled for a December 2020 release.
Disney will add 21st Century Fox's 22 regional cable networks dedicated to sports and cable networks FX and National Geographic. Disney will inherit $13.7B in Fox's net debt, but Disney estimates the acquisition will create $2B in synergies by 2021.
In our last article about Disney we wondered if Disney was out of the slump that had caused the company's stock to decline over the past two years. While there are still some questions that need to be answered regarding the Disney streaming service and ESPN Plus, this acquisition is a plus for the company. The properties that will transfer from Fox to Disney will help Disney create a competitive streaming service.
At the close of the market Disney stock (DIS) closed at $110.57 per share.
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