If Disney buys Fox, it will be industry game-changer
A seismic shift is underway as two of Hollywood’s biggest behemoths are set to merge in a potential landmark moment for the entertainment industry, as Disney reportedly prepares to buy Rupert Murdoch’s 21st Century Fox.
“If the deal goes through, it represents a sea change within the traditional industry,” said Jason Squire, editor of “The Movie Business Book” and a University of Southern California associate professor. “Disney, which is already a powerhouse that in the theatrical realm is powering forward beyond the competitors, will become even more powerful.”
The Disney brand, Squire added, caters to everyone from kids to preteens to retirees.
“It is now, without the acquisition, an extraordinary, carefully planned and overseen effort to satisfy every generation,” he said.
If it goes through, the number of major Hollywood studios drops from six to five. “In terms of sellers in the marketplace, agents, managers, producers, production companies — they have one less buyer,” Squire said. “So that’s a factor. But they’d be in very good hands. The Disney management is first-rate.”
The moviegoer, Squire added, will be “perfectly fine,” as ticket prices are set by movie theatres and not distributors. And the deal means Disney gets the film rights to “X-Men” and the “Fantastic Four.”
Fox would sell its movie and TV production studios but keep its news, sports and broadcast network, CNBC reported, and the deal could be struck as early as next week.
Disney currently holds 18 percent of the domestic box office while Fox has 12 percent, according to Forbes.com, and the deal could give Disney 30 percent.
CNBC reported that Fox’s assets are worth $60 billion. Disney CEO Robert Iger, The Wall Street Journal reported, would likely stay on to help with the acquisition.
Selling off its movie and production studios means Fox would have more to spend on news.
“Disney won’t own Fox News or Fox Sports, but what do you think the owners of Fox News are going to do with lots more money on hand and an explicit devotion to news and media?” wrote Forbes.com contributor Scott Mendelson. “It’s not Disney’s responsibility to make sure that its money doesn’t go toward evil, but the powers behind Fox News having more money and more free time to devote to media and politics is not going to be good for media and politics.”