Disney to buy Murdoch’s 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 tV 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.
and 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 takeover is currently 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 that Sky, which has been heralded as a pioneering British company renowned for its innovative technology and sports coverage and has 23million viewers, will fall into american hands. It leaves the
‘News will always be valuable’
business facing an uncertain future with a Hollywood-based owner which has not historically seen news reporting as a key part of its business.
But Mr Murdoch said the tieup showed that despite the rise of the internet, high-quality broadcasters are still worth good money. He said: ‘the new company is borne out of an important lesson that I’ve learned in my long career in media. Namely, content and news relevant to viewers will always be valuable.’
But although analysts expect it to win support from shareholders, the bid could fall foul of US regulators who have already 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 in an interview whether Sky News had a future under Disney’s ownership, Mr Iger said: ‘absolutely. all of Sky has a future.
‘We obviously will look at the overlap between the businesses that are similar.
‘We believe we’re going to create a lot of opportunities for a lot of Fox employees, opportunities beyond the ones they have today.’ the deal will see Disney take control of divisions including Fox Searchlight Pictures and Fox Sports Regional Networks.
Disney already owns companies as diverse as the Muppets Studio, LucasFilm, the Disneyland resorts, and animated film maker Pixar.
Fox will create a new company, including the Fox News Channel, Fox Business Network and Fox Sports.
Mr Iger added: ‘We’re honoured and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building.
‘We’re excited about this extraordinary opportunity to significantly increase our portfolio of well-loved franchises and branded content to greatly enhance our growing direct-to-consumer offerings.’