Disney, 21st Century Fox Shareholders approve deal, ending corporate duel
By
THE NEW YORK TIMES
PUBLISHED: July 27, 2018
Shareholders of The Walt Disney Co. and 21st Century Fox agreed to a $71.3 billion purchase plan that gives Disney the bulk of Rupert Murdoch’s media empire, substantially altering the entertainment landscape.. (AP Photo/Richard Drew, File)
In separate ballrooms at the Hilton Hotel in Midtown Manhattan on Friday morning, shareholders of The Walt Disney Co. and 21st Century Fox agreed to a $71.3 billion purchase plan that gives Disney the bulk of Rupert Murdoch’s media empire, substantially altering the entertainment landscape.
Regulators in more than a dozen countries must still give their approval. But the shareholder votes brought to a close a six-month corporate showdown, waged across two continents by Disney and Comcast, for supremacy in the media business. Murdoch’s trove represented a once-in-a-lifetime opportunity to gain the bulk needed as a counterattack against the tech giants that have aggressively moved into Hollywood.
“Avatar,” the “X-Men” movies, “Titanic” and TV shows such as “The Simpsons” and “This Is Us” will now be owned by Disney. The deal also gives Disney the cable networks FX and National Geographic; a controlling stake in the streaming service Hulu, which has more than 20 million subscribers; and Star, one of India’s fastest growing media companies.
Disney’s chief executive, Robert A. Iger, has staked his legacy on this deal, and to gain control of Fox, he had to fend off an aggressive play by Comcast. Iger and Murdoch originally agreed to a deal in December. After months of maneuvering, Comcast, the Philadelphia-based cable giant, topped Disney’s original bid in June, but Iger returned almost immediately with a much higher offer that mixed cash and stock. Murdoch and the Fox board quickly accepted.
Comcast called it quits soon after.
Disney will soon unveil a Netflix-style streaming service to deliver its shows and movies straight to viewers.
“One of the most exciting aspects of our Fox acquisition is that it will allow us to greatly accelerate our direct-to-consumer strategy,” Iger said when he announced the deal in December. “We believe creating a direct-to-consumer relationship is vital to the future of our media businesses, and it’s our highest priority.”
At the Disney meeting, shareholders voted on one item. Disney’s final offer was made up of equal parts cash and stock — $35.7 billion in cash, 343 million shares — and Disney investors had to approve the issuing of those shares.
https://www.ocregister.com/2018/07/27/disney-fox-shareholders-approve-deal-ending-corporate-duel/