Disney has increased their 21st Century Fox bid to $71.3 billion amid competition
Disney has increased their 21st Century Fox bid to $71.3 billion amid competition
In effect, this deal would have had Fox shed their entertainment divisions, allowing the company to focus on their highly profitable, but controversial, news networks. This deal will give Disney a majority stake in Hulu, the online streaming service, and a 39% stake in Sky, giving Disney an international presence in television and control of the many film and TV properties that Fox holds the rights to.Â
This sale would have given Disney the rights to TV shows like the Simpsons, Futurama, Firefly and the X-Files and Film franchises like the Alien series, the rebooted Planet of the Apes series and the X-Men franchise.Â
Another interesting aspect of this deal is that Disney will finally gain the distribution rights to Star Wars Episode IV: A New Hope, as Fox previously owned the full distribution rights to the film in perpetuity (basically forever).
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The US Department of Justice highlighted that Disney already owned a large chunk of ESPN, making the addition of Fox’s sporting assets potentially anti-competitive, delaying the sale until recently. Disney has now agreed to sell the 22 regional sports networks that are included in their deal, allowing things to progress.Â
(Disney Chairman, Robert A Iger with Rupert Murdoch)
During the sale’s delays, Comcast places a $60 billion bid on Fox, countering Disney’s existing offer, though a report from Variety has claimed that Disney have upped their efforts and has now pledged to pay $71.3 billion for the company, hoping to secure a sale.Â
Comcast is likely to increase their bid in response to Disney, though Disney’s agreement with the department of justice has given the company permission to acquire 21st Century Fox as normal.
This deal will turn Disney into an even more colossal massive media giant, assuming the acquisition goes smoothly and will allow Fox to shed some weight and focus on some of its more profitable business ventures. A funny side effect of this deal is that the Alien Xenomorph could soon be considered as a Disney princess? Â
You can join the discussion on Disney’s increased bid for 21st Century Fox on the OC3D Forums.Â