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Disney Signs Amended Deal To Acquire Fox For $71.4 Billion

June 20, 2018 | Posted by Joseph Lee
Disney Fox

If you were hoping for Comcast to lose this bidding war so you could get X-Men and the Fantastic Four in the Marvel Cinematic Universe, Disney has granted your wish. As we reported yesterday, Disney increased its bid for 20th Century Fox and other Fox assets (National Geographic and FX, Star TV, stakes in Sky, Endemol Shine Group and Hulu as well as regional sports networks) to try and beat Comcast’s $65 billion cash offer. Now Coming Soon reports that Disney has signed an amended acquisition agreement with 21st Century Fox for $71.3 Billion ($38 per share in cash and stock) and will acquire the company after the spin-off business for “New Fox” launches. Disney’s initial offer before Comcast intervened was $52.4 billion.

If you’re interested how this shakes out beyond the Marvel implications, this also means that Disney will the distribution rights to the original 1977 Star Wars film for Lucasfilm, as well as the rights to franchises like Avatar, Planet of the Apes, Alien, Predator, Die Hard, Kingsman, Ice Age and Night at the Museum, among others. On the TV side they’ll get the rights to The Simpsons, Family Guy, Modern Family, American Horror Story and others. This adds to their movie market share as well. In 2017, they had 21.8% while 20th Century Fox had only 12%.

Walt Disney Company Chairman and CEO Robert A. Iger said: “The acquisition of 21st Century Fox will bring significant financial value to the shareholders of both companies, and after six months of integration planning we’re even more enthusiastic and confident in the strategic fit of the assets and the talent at Fox. At a time of dynamic change in the entertainment industry, the combination of Disney’s and Fox’s unparalleled collection of businesses and franchises will allow us to create more appealing high-quality content, expand our direct-to-consumer offerings and international presence, and deliver more personalized and compelling entertainment experiences to meet growing consumer demand around the world.

Disney will pay a total of $35.7 billion in cash and give 343 new shares to 21st Century Fox shareholders, which is a 19% stake in Disney on a pro forma basis. They will also assume $13.8 billion of debt from Fox. The price is a total equity value of $71.3 billion and a total transaction value of $85.1 billion, if there’s no adjustment for taxes. Disney has secured financing commitments for the cash portion of the acquisition.

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Disney, Joseph Lee