In a major move that might change the face of entertainment, Disney has acquired 21 Century Fox for $71.3 billion just after midnight. This move is expected to usher in a transformation for both companies that will reshape Hollywood, news and sports, according to a report by TechCrunch.
The main aim of this deal is to present Disney for a streaming-centric future. The company hs already taken a step in this direction with the launch of ESPN+ and it is also planning to launch Disney+ later this year which will include new shows based on the Star Wars and Marvel universes, as well as Disney’s entire movie library.
This move has also allowed Disney to take over Fox’s film and TV studio along with the FX Networks and National Geographic. It also adds Star India, a big player in the Indian television space. With the latest acquisition Disney has 60 percent of Hulu, with Comcast sitting on 30 percent, and WarnerMedia with other 10 percent.
This latest acquisition of Fox makes Disney one of the leading names in the entertainment business as is evident from Disney’s new website which showcases “The Shape of Water,” “Avatar” and “Deadpool” (all Fox films), as well as “The Simpsons” and “Atlanta”.
This move also reinforces Disney’s position as a brand that still draws massive audiences to the theatres and with the acquisition of Marvel and Lucas Films, Disney has had the no one position at the world box office for the past four years.
According to the company, the new assets could quickly add about $19.3B in annual revenue and $1.6B in profits, along with some $2B in cost savings.
Speaking about the acquisition, CEO Bob Iger said, ““I wish I could tell you that the hardest part is behind us; that closing the deal was the finish line, rather than just the next milestone.”