In a deal that was just announced, The Walt Disney Company has puchased the rights to a huge chunk of 21st Century Fox. The deal is worth $52.4 billion in stock, plus $13.7 billion more in net debt that Disney will be taking on.
Now this isn’t something that should be seen as something small, because Disney will be taking over FX Networks, Nat Geo, YES Network (NYC), Prime Ticket, FS-West, as well as Fox’s stake in Hulu & Sky Plc, just to name a couple.
Fox will keep the rights to FS1, FS2, Fox News Channel, The Big Ten Network and Fox Business, but those will all be part of a newly listed company once the deal is finalized.
Disney made this move because there is a large amount of people cancelling their cable subscriptions and it was hurting their biggest TV draw, ESPN. This purchase will bolster their range, and also put them in an arms race of sort with streaming giant Netflix, because they will now own a good piece of it’s biggest rival, Hulu. The next 12-18 months are going to be very interesting.
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