Disney and 20th Century Fox's $60-B Mega Deal Announcement Expected on Thursday
A new report on CNBC reveals that Disney and 20th Century Fox will announce their mega deal on Thursday, Dec. 14. This multi-billion dollar deal reportedly involves Disney's acquisition of a huge part of Fox.
Following Comcast's announcement on Monday that it would no longer pursue Fox, CNBC reported on Tuesday that Disney was looking to acquire key entertainment and sports assets from the company, including its film and TV studio. The said mega deal reportedly costs $60 billion, but it will not mean that all of Fox's assets will be owned by Disney.
According to reports, Fox will still retain Fox News, the Fox broadcast network and Fox Sports 1 after the acquisition. These assets, however, will be reconstituted into a new independent company that is worth roughly $10 a share. As part of the pact, shareholders of Fox will still get a share in this new company. Fox shareholders will be entitled to a share of what remains of the company after the deal.
Get Our Latest News for FREE
Meanwhile, Fox's cable and international assets that will be acquired by Disney reportedly include FX, National Geographic, its stake in Hulu, Star's India TV and a 39-percent stake in U.K.-based Sky. A source also revealed that under the terms of the deal, a small stake in Disney will go to a trust owned by Fox Executive Chairman Rupert Murdoch and his family.
Once the deal materializes, that is expected to put a price tag of up to $29 share for Fox's film and TV studio, including certain international and cable assets. It will also value all of Fox at more than $40 a share.
Both Fox and Disney refused to immediately respond to the reports. If the deal happens, Disney's acquisition of some of Fox's assets is expected to tremendously reshape the entertainment business as Disney gains access to Fox's massive library of shows and films.
