The breaking news this Friday evening is that Walt Disney and 21st Century Fox shareholders approved the media companies’ $71 billion deal at separate meetings, bringing Disney’s acquisition of Fox entertainment assets closer to completion.
Yes, it’s true, Twenty-First Century Fox Inc said its shareholders voted to approve Walt Disney Co’s $71 billion purchase of its film and television assets. And these results were announced at a special shareholders’ meeting held in New York.
Disney was forced to sweeten its offer last month after Comcast Corp, the largest U.S. cable company, made a $66 billion bid for Fox’s well-known TV shows and movie franchises, including the “X-Men” and “The Simpsons.”
The bidding between Comcast and Disney was part of a bigger battle in the entertainment industry as media companies spend tens of billions of dollars on deals to compete with Netflix Inc and Amazon.com Inc.
Disney announced an agreement to buy a large part of Fox in December, initially offering $52.4 billion for Fox’s film and television studios, among other businesses. After Comcast made a rival bid of $65 billion, Disney raised its offer to $71 billion in cash and stock. Comcast said earlier this month it would cede the bidding war to Disney.
After receiving its shareholders’ approval, Disney is awaiting regulatory reviews outside the U.S. The Department of Justice cleared the transaction last month, saying Disney must sell Fox’s regional sports networks as a condition of its approval. The European Union and others are still evaluating the proposed deal.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| FOXA | 21ST CENTURY FOX | 45.30 | -0.07 | -0.17% |
| DIS | WALT DISNEY COMPANY | 113.02 | -0.49 | -0.43% |
Last December, when the deal was announced, 21st Century Fox Executive Chairman Rupert Murdoch told FOX Business during an interview on “Mornings with Maria,” “There’s only must-see Fox News and must-see FOX Business.”
“The new Fox will have Fox News, FOX Business, Fox Broadcasting, Fox Sports, but the point is it will have a cash flow of at least $2 billion a year,” Murdoch said, adding that he can use that money to build another business. “We can see expanding that and taking other opportunities and building another great company.”
21st Century Fox is the parent company of FOX Business and Fox News.
