The earlier speculation has come to an end – Disney announced today that it has officially acquired 21st Century Fox for the price of $52.4 billion in stock. According to the announcement, Disney will acquire 21st Century Fox’s film and television studios, cable entertainment networks and international TV businesses, while Fox retains their Fox News Channel, Fox Broadcasting, and FS1/FS2 sports channels.
In addition to the news of the sale between these two entertainment goliaths, Disney CEO Bob Iger, who’s contract was set to expire in July of 2019, has agreed to extend his current role as CEO through the 2021 calendar year.
Check out the intro to the official press release copied below and then click here to visit Disney’s site for the full read.
The Walt Disney Company and Twenty-First Century Fox, Inc. (21st Century Fox) today announced that they have entered into a definitive agreement for Disney to acquire 21st Century Fox, including the Twentieth Century Fox Film and Television studios, along with cable and international TV businesses, for approximately $52.4 billion in stock (subject to adjustment). Building on Disney’s commitment to deliver the highest quality branded entertainment, the acquisition of these complementary assets would allow Disney to create more appealing content, build more direct relationships with consumers around the world and deliver a more compelling entertainment experience to consumers wherever and however they choose. Immediately prior to the acquisition, 21st Century Fox will separate the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network into a newly listed company that will be spun off to its shareholders.
Under the terms of the agreement, shareholders of 21st Century Fox will receive 0.2745 Disney shares for each 21st Century Fox share they hold (subject to adjustment for certain tax liabilities as described below). The exchange ratio was set based on a 30-day volume weighted average price of Disney stock. Disney will also assume approximately $13.7 billion of net debt of 21st Century Fox. The acquisition price implies a total equity value of approximately $52.4 billion and a total transaction value of approximately $66.1 billion (in each case based on the stated exchange ratio assuming no adjustment) for the business to be acquired by Disney, which includes consolidated assets along with a number of equity investments.
