With reports of a Disney/21st Century Fox blockbuster corporate deal in the neighborhood of $60 billion or more nearing a completion, the subject of how this media acquisition could impact the development and eventual roll-out of Disney’s new streaming service was raised by an article posted on Variety.
Details are currently scarce on Disney’s new online service set for release sometime in 2019. We know the direction CEO Bob Iger wants to take as far as pricing is concerned for the service when compared to the likes of Netflix. Variety’s piece mentions Disney acquiring all of Fox’s stake (30%) in the Hulu streaming service with the intention of possibly using the technology behind that content provider as the foundation for their upcoming dedicated streaming service.
Disney is in talks with 21st Century Fox to acquire major portions of its entertainment assets, including the 2oth Century Fox film and TV studio, the FX Networks and National Geographic Channels cable groups, the regional Fox Sports cablers as well as Fox’s 39% interest in Euro satcaster Sky and a collection of international channels including the prosperous Star India outlet. Disney would also buy out Fox’s 30% interest in Hulu — a move seen as a first step toward turning Hulu into the foundation of the standalone streaming service that Disney has vowed to launch in 2019.
Variety also mentions how the Disney/21st Century Fox deal could aid in the search for Iger’s eventual successor as the company’s CEO. Iger’s recent contract extension runs till July 2, 2019.
There’s also speculation that a Fox acquisition could help Disney with its CEO succession problem. Twenty-First Century Fox CEO James Murdoch and 21st Century Fox president Peter Rice are seen as candidates for possibly serving an apprenticeship under Iger with an eye toward eventually taking the reins.
