March 3, 2021

Disney closes the purchase of 21st Century Fox for 62,800 million euros

Disney closes the purchase of 21st Century Fox for 62,800 million euros


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Disney has closed the purchase of 21st Century Fox, Fox's entertainment division, for 62,800 million euros (71,300 million dollars) after receiving green light from regulators in several countries in recent weeks.

From the operation is born a giant of entertainment of a size never seen to date, which will include under its umbrella, among other contents, a «Star Wars», Marvel, Pixar, «The Simpsons» and «Avatar».

The acquisition and the contents that it implies pave the way for the launching of the Disney subscription service, Disney +, in 2019, with which it intends to compete with Netflix, the leader of the sector.

Disney takes control, among others, from 20th Century Fox studio, FX and National Geographic channels or 30% of Hulu subscription service, which will reach 60% of the platform. "The combination of the wealth of creative content and proven talent of Disney and 21st Century Fox creates the pre-eminent global entertainment company, well positioned to lead in an incredibly dynamic and transformative era," said the CEO of Disney, Bob Iger, it's a statement.

The company of Iger has promised to the shareholders a saving of 2,000 million dollars until 2021, which will cause a mass dismissal which, according to some estimates, will affect 4,000 workers. With the acquisition, Disney absorbs 15,400 21st Century Fox workers.

Despite the sale of the entertainment division, the so far owner of the Fox empire, the tycoon Rupert Murdoch, will maintain ownership of Fox News and Fox Sports 1 (FS1), grouped under Fox Corporation, focused on news and sports.

At the end of 2017 Disney offered 52,400 million dollars for the closed operation today, but a Comcast proposal to Fox for 65,000 million forced the company to raise the offer to 71,300 million, which is equivalent to 38 dollars per share.

The conditions of the transaction allow the shareholders of 21st Century Fox to choose between receiving $ 51.57 in cash for their titles or change them 0.45 shares of the new Disney conglomerate.

Disney was already the great dominator of Hollywood before the purchase thanks to successful brands like Lucasfilm, Pixar or Marvel.

According to data from the specialized portal Box Office Mojo, three of the five highest grossing films of the past year around the world belonged to the Mickey Mouse group.

«Avengers: Infinity War» was the number one with 2.048 million dollars, «Black Panther» hung the silver medal with 1.347 million, and «Incredibles 2» ranked fourth with 1.243 million.

Disney has also begun 2019 with force, since «Captain Marvel», that scarcely takes two weeks in the big screen, heads the list of taquilleras tapes around the world with 779 million dollars.

Two films that promise to break records

Only throughout 2019, Disney has planned very important releases such as the new versions of "Dumbo", "Aladdin" and "The Lion King", the fourth installment of "Toy Story", and, above all, two films who promise to break box office records: «Avengers: Endgame» by Marvel and episode IX of «Star Wars».

Disney's leadership in the cinema could be reinforced thanks to the purchase of the Fox movie plot, which includes rights to the comic characters of X-Men and Deadpool.

Fox also has in his possession "Avatar", the highest grossing film of all time with 2.788 million dollars and of which its director James Cameron prepares at least four sequels.

As for the small screen, Fox has one of the best series collections in the United States with «The Simpsons» as unquestionable spearhead.

The part of Fox dedicated to television, which also includes the powerful FX or National Geographic channels, is also responsible for other series such as "Modern Family," "Family Guy," "This is Us," "American Horror Story," "The X-Files," or "The Americans."

All these productions in the small and the big screen, together with Disney's family and animated catalog, could be a key asset of the group to attract the public in its imminent battle against "streaming" leaders such as Netflix.

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