Disney has announced that it has completed its acquisition of Fox, a monumental deal worth $71 billion. The deal was originally announced back in 2017, and it has taken until now to receive the various regulatory approvals necessary to finalize the transaction.
The acquisition brings 20th Century Fox, the FX networks, National Geographic, and more under the Disney umbrella. Additionally, it gives Disney a 30 percent stake in the streaming service Hulu, significantly bolstering its position in the competitive streaming market.
Strategic Implications of the Acquisition
This acquisition is not just a financial maneuver but a strategic one that positions Disney as a dominant force in the entertainment industry. By acquiring 20th Century Fox, Disney gains access to a vast library of films and television shows, including iconic franchises such as “Avatar,” “X-Men,” and “The Simpsons.” This extensive content library will be a valuable asset for Disney’s own streaming service, Disney+, which aims to compete with other streaming giants like Netflix and Amazon Prime Video.
Moreover, the inclusion of FX Networks and National Geographic adds a diverse range of high-quality programming to Disney’s portfolio. FX Networks is known for its critically acclaimed series such as “American Horror Story” and “Fargo,” while National Geographic offers a wealth of educational and documentary content. These additions will help Disney cater to a broader audience and enhance its content offerings across various platforms.
“This is an extraordinary and historic moment for us—one that will create significant long-term value for our company and our shareholders,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “Combining Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the preeminent global entertainment company, well positioned to lead in an incredibly dynamic and transformative era.”
Impact on the Streaming Landscape
The acquisition also has significant implications for the streaming landscape. With a 30 percent stake in Hulu, Disney now has a controlling interest in the streaming service, as it already owned a 30 percent stake prior to the acquisition. This control allows Disney to shape Hulu’s strategic direction and integrate it more closely with its other streaming services, including Disney+ and ESPN+.
Hulu has been a strong player in the streaming market, known for its diverse content library and original programming such as “The Handmaid’s Tale.” With Disney’s increased involvement, Hulu is likely to see further investment in original content and potentially more exclusive deals, making it an even more attractive option for subscribers.
Furthermore, Disney’s expanded content library from the Fox acquisition will provide a steady stream of new and classic titles for Hulu, enhancing its appeal to a wide range of viewers. This move is part of Disney’s broader strategy to offer a comprehensive suite of streaming services that cater to different audience segments, from family-friendly content on Disney+ to sports on ESPN+ and a mix of entertainment on Hulu.
You can find out more information about the deal between Disney and Fox over at Disney’s website at the link below.
Source Disney, MacRumors
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