As expected, Walt Disney Co DIS confirmed Thursday it's entered into an agreement to acquire media and entertainment assets from Twenty-First Century Fox Inc FOXA.
What You Need To Know
As part of the agreement, Disney will pay Fox's shareholders $52.4 billion or 0.2745 Disney shares for each 21st Century Fox share they hold to acquire 21st Century Fox, including the Twentieth Century Fox Film and Television studios, along with cable and international TV businesses.
Fox's shareholders will receive 0.2745 Disney shares for each 21st Century Fox share they hold.
Ironically enough, an acquisition of Fox's media assets by Disney was predicted by "The Simpsons" years ago.
Why It's Important
Disney said in a press release the acquisition of Fox's "complementary assets" would better position the company to create more appealing content, build more direct relationships with consumers and deliver an overall superior entertainment experience to consumers "wherever and however they chose."
What's Next?
In conjunction with the announcement, Disney CEO Bob Iger confirmed he will remain CEO until the end of 2021.
"You know I've got one of the greatest jobs in the world I've enjoyed doing it for 12 years and this combination makes it even more exciting and I'm looking forward to the future at Disney," the executive said.
On Fox's end, the company 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.
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