Disney to buy 21st Century Fox for £39bn
DISNEY has agreed to buy Rupert Murdoch’s 21st Century Fox media empire for £39billion, it was confirmed last night.
The deal will see the entertainment giant take control of Fox’s film and television production studios, which are responsible for the UK’s Sky TV network, including Sky News.
The Murdochs will create a new Fox company which will keep Fox News and other major US TV networks.
A defiant Mr Murdoch, 86, insisted the sale was not a climbdown and that it allows him to focus on his lifelong passion for news.
He said: ‘I know a lot of people are wondering, why did the Murdochs take such a momentous decision? Are we retreating? Absolutely not. We’re pivoting at a pivotal moment.
‘We’ve always said we will deliver more choices for customers, provide great storytelling, objective news, challenging opinion and compelling sports. We’re proud to recommit to that promise and enable our shareholders to benefit for years to come through ownership of two of the world’s most iconic, relevant and dynamic media companies.’
The deal does not include News Corp, the family-controlled publishing company that owns newspapers such as The Wall Street Journal, The Sun and The Times. The agreement between Disney and Fox will not affect 21st Century Fox’s attempt to take over Sky.
The company has made an £11.7billion bid to buy the 61 per cent of Sky it does not own. This is being investigated by Britain’s Competition and Markets Authority after fears were raised over media independence and broadcasting standards in the UK. This transaction will continue, with Fox’s Sky stake handed over to Disney whether it succeeds or not. Mr Murdoch said: ‘If anything does go wrong, the Sky shares will still go to Disney and it will be up to them to decide what to do.’
The Disney deal will mean Sky, which has been heralded as a pioneering British firm renowned for its innovative technology and sports coverage and has 23million viewers, will fall into American hands.
It leaves the business facing an uncertain future with a Hollywood-based owner that has not seen news reporting as key to its business.
Although analysts expect the bid to win support from shareholders, it could fall foul of US regulators who have tried to block an £85billion takeover of Time Warner by AT&T.
Disney chief executive Bob Iger will stay in charge until 2021 to oversee the merger.
Asked whether Sky News had a future under Disney’s ownership, Mr Iger said: ‘Absolutely. All of Sky has a future.’
‘At a pivotal moment’