Walt Disney Co on Thursday agreed to buy key film and television operations of 21st Century Fox in a $52.4 billion stock deal that could reshape the media-entertainment world and step up a challenge to Netflix and emerging tech platforms.
The blockbuster transaction also vastly reduces the Fox media empire built by Rupert Murdoch, leaving the 86-year-old tycoon and his two sons with a more tightly focused group comprised of the Fox broadcast network, Fox News Channel and sports channels.
The deal will see Disney acquire the vaunted Fox Hollywood film and television studios, cable entertainment networks and international TV businesses, bringing popular entertainment properties including X-Men, Avatar, The Simpsons, FX Networks and National Geographic into Disney's portfolio.
“The acquisition of this stellar collection of businesses from 21st Century Fox reflects the increasing consumer demand for a rich diversity of entertainment experiences that are more compelling, accessible and convenient than ever before,” said Disney's chief executive Robert Iger in a statement.
Iger, who was previously expected to step down in 2019, will now stay on through 2021.
Disney has been seen as trying to bolster its Hollywood and television positions by getting the Fox library of content to strengthen its arsenal against Netflix and other rivals.
Disney, which owns the ABC television network, ESPN and has major studios in Hollywood, is set to launch its own streaming services aimed at competing against Netflix and Amazon.