Disney to spend $52B for much of Fox empire

Company says move puts it in position to compete with Netflix

NEW YORK — Disney is buying a large part of Fox, including its movie and television studios, for about $52.4 billion, as the home of Mickey Mouse tries to meet competition from technology companies in the entertainment business.

Disney’s all-stock deal for the Murdoch family’s 21st Century Fox gives it the studios that produce the Avatar movies, “The Simpsons” and “Modern Family.” Murdoch will form a new company to keep the U.S. television networks, including Fox News Channel, Fox Business Network and Fox Broadcasting. “The Simpsons” will continue to air on Murdoch’s Fox stations.

The deal also brings Marvel characters, such as X-Men and The Avengers, under one roof — Disney’s.

In owning these properties, Disney will be in a better position to compete with the likes of Netflix when it launches ESPN- and Disneybranded streaming services in coming years.

That Rupert Murdoch and his sons were willing to sell off much of the business that has been built up over decades came as a shock to the entertainment industry.

Murdoch, who built a global media and entertainment empire out of an inheritance from his father in Australia, said what remains of his family’s business will focus on American news and sports. Murdoch and his sons describe the move as a return to the company’s lean and aggressive roots.