Disney Officially to Buy 21st Century Fox for $52 Billion

The deal will include FX and Fox's stake in Hulu.

By Terri Schwartz

The Walt Disney Company has set a deal to purchase 21st Century Fox for an all-stock transaction valued at $52.4 billion, Disney announced Thursday. This historic deal will include a number of Fox's assets including FX, National Geographic and Fox's stakes in Hulu.

As part of this announcement, Bob Iger has extended his contract with Disney as chairman and CEO through 2021. Certain Fox assets including Fox Broadcasting Co., Fox Sports and Fox Television Stations, as well as the 20th Century Fox lot in Los Angeles, will spin off into a new company.

"The acquisition of this stellar collection of businesses from 21st Century Fox reflects the increasing consumer demand for a rich diversity of entertainment experiences that are more compelling, accessible and convenient than ever before,” Iger said in a statement. “We’re honored and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building, and we’re excited about this extraordinary opportunity to significantly increase our portfolio of well-loved franchises and branded content to greatly enhance our growing direct-to-consumer offerings. The deal will also substantially expand our international reach, allowing us to offer world-class storytelling and innovative distribution platforms to more consumers in key markets around the world."

21st Century Fox's chairman Rupert Murdoch said in a statement: “We are extremely proud of all that we have built at 21st Century Fox, and I firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace in what is an exciting and dynamic industry. Furthermore, I’m convinced that this combination, under Bob Iger’s leadership, will be one of the greatest companies in the world. I’m grateful and encouraged that Bob has agreed to stay on, and is committed to succeeding with a combined team that is second to none.”

This deal still needs to go through the Justice Department and antitrust regulators, which recently shut down a deal between AT&T and Time Warner. But should this deal go through, it would mark a historic shift for Hollywood and the media landscape as a whole.

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