Disney to expand empire with Fox tie-up

NEW YORK: Walt Disney Co agreed to buy key fi lm and television assets of 21st Century Fox, in a US$ 52.4 billion deal that bolsters the mediaentertainment powerhouse’s challenge to Netflix and emerging rivals in the streaming wars.

The blockbuster stock transaction also vastly reduces the Fox media empire built by Rupert Murdoch, leaving the 86-year- old tycoon and his two sons with a more tightly focused group which includes the Fox broadcast network, Fox News Channel and sports channels.

The deal was quickly hailed by US President Donald Trump, who congratulated Murdoch – in stark contrast to his administration’s opposition to a tie-up between AT& T and Time Warner.

It will see Disney acquire the vaunted Fox Hollywood film and television studios, cable entertainment networks and international TV businesses, bringing popular entertainment properties including ‘ X- Men,’ ‘Avatar,’ ‘ The Simpsons,’ FX Networks and Nat ional Geographic into Disney’s portfolio.

“The acquisition of this stellar collection of businesses from 21st Century Fox ref lects the increasing consumer demand for a rich diversity of entertainment experiences that are more compel l ing, accessible and convenient than ever before,” said Disney chief executive Robert Iger in a statement.

Iger, who was previously expected to step down in 2019, will now stay on through 2021.

Disney’s move to acquire the Fox library of content is seen as a bid to bolster its arsenal against Netflix and Amazon as well as emerging tech players such as Facebook and Apple, which are cashing in on a move towards streaming services and away from traditional pay TV packages. — Reuters