Murdoch sells Fox to Disney in £49bn deal
RUPERT Murdoch called time on more than half a century of media expansion as he struck a $66.1billion (£49.2billion) deal to sell 21st Century Fox assets to entertainment giant Walt Disney.
The all-share deal includes Fox’s 39 per cent stake in satellite broadcaster Sky. The 86-year-old tycoon and his family will take a stake of just over 4 per cent in Disney, which will gain control of Fox film and television studios, and cable entertainment networks.
Disney also acquires assets such as X-Men, Avatar, The Simpsons and National Geographic as it bids to counter the growing threat of digital rivals such as Netflix and Amazon.
Fox will spin off to its investors a package of news, sports and broadcast businesses to create a new Fox company focused on live news and sports brands.
Murdoch said: “We are extremely proud of all we have built at 21st Century Fox, and I firmly believe this combination with Disney will unlock even more value fore shareholders as the new Disney continues to set the pace in what is an exciting and dynamic industry.”
Bob Iger, who will continue as Disney chairman until the end of 2021, said the acquisition of a “stellar collection” of Fox businesses reflects “the increasing consumer demand for a rich diversity of entertainment experiences that are more compelling, accessible and convenient than ever before”.
Iger said talks are continuing about a potential role for Murdoch’s son James, Fox’s chief executive.
Fox said the deal did not alter its “full commitment” to completing its proposed £11.7billion bid to take full control of Sky, which is being investigated by UK competition watchdogs.
A spokesman for the Department for Digital, Culture, Media and Sport said yesterday: “While 21st Century Fox’s existing plans to acquire Sky remain in place, we expect the current investigation to continue.”
Rupert Murdoch said of the new Fox business: “It is born out of an important lesson I’ve learned in my long career in media – namely, content and news relevant to viewers will always be valuable. We are excited by the possibilities.”