Fox1

Disney Buys Fox For $52 Billion – Now Owns 60% of Hulu

Today it became official as Disney is buying Fox for about $29.54 per share, based on Disney’s closing share price Wednesday. The businesses included giving the deal a total value of approximately $66.1 billion, with Disney assuming $13.7 billion of Fox’s net debt.

With this deal, Disney will get ownership of 20th Century Fox movie and television studio, Fox’s 22 regional sports channels, cable channels including FX and National Geographic, and Fox’s portfolio of international operations, including a fast-growing pay-TV service in India. The deal will also give Disney 60% ownership of Hulu.

The deal does not include Fox News, the Fox broadcast network, television stations and Fox Sports 1 and Fox Sports 2. His newspapers such as Wall Street Journal, New York Post, Times of London and a portfolio of Australian properties are housed in a second company, News Corp.

“We’re honored and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building, and 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,” Iger said in a statement.

“The deal will also substantially expand our international reach, allowing us to offer world-class storytelling and innovative distribution platforms to more consumers in key markets around the world,” Iger said.

The deal still needs to approve before it can be official and many are speculating the DOJ may request some parts of Disney or Fox be sold off to approve the deal.

Source: Bloomberg

Please follow us on Facebook and Twitter for more news, tips, and reviews.

Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.

24 Responses to Disney Buys Fox For $52 Billion – Now Owns 60% of Hulu

  1. Alan Burton December 14, 2017 at 9:25 am #

    Great, regional ESPN channels….just what we need. I also wonder what NBC/Universal will do with their share of HULU.

    • Dean G December 14, 2017 at 10:26 am #

      Why would they do anything with it?

      • Alan Burton December 14, 2017 at 11:16 am #

        If this deal goes through Disney will own 60% of HULU with NBCU 30% and Time-Warner/AT&T the other 10%. With little say in the governance of HULU previously due to restrictions from the FTC/DOJ from the Comcast buyout of NBCU they will have even less say if Disney owns 60% of it. Does this scenario make them start looking at going it alone like CBS? That is what I was wondering.

        • Dean G December 14, 2017 at 1:34 pm #

          And? I don’t see Hulu changing much from what they already do except maybe bringing in more Disney content. Doubtful as Disney already has pay per month for Disney content, so what would be the point of trying to force out others on Hulu? There is no upside for Disney in that regards. They also seemed to have gotten along just fine before, why would you think otherwise now?

  2. Scott December 14, 2017 at 9:45 am #

    I’m not very savvy regarding buyouts and mergers, but what is the difference between this deal and the one that AT&T is trying to complete that has created such a fuss?

    • IBWTF December 14, 2017 at 10:03 am #

      To my understanding… something to do with the FCC…

      • Ryan Moore December 14, 2017 at 10:46 am #

        Close. It has to do with the FTC and DOJ (though the FCC will have separate involvement in a deal like this in other capacities). I won’t got into a ton of detail here, but since you both asked the question, here’s a 10,000 foot overview of what’s going on.

        Transactions over a certain threshold ($80.8 million currently) trigger a notification filing that has to be made to the government (this is called an “HSR” filing because the obligation arises under the Hart-Scott-Rodino Act). The HSR filing lets the government know that parties want to engage in a transaction and provides certain details about that transaction.

        Once that filing is made, the government has a period of 30 days to object to the deal. If they object (which is what happened with the AT&T / Time Warner transaction), a dispute process begins. If they need more time or information to decide whether to object, the waiting period is extended. And if there is no formal objection or second request, the waiting period “expires” and the parties are free to move forward with the deal.

        In this case, Fox and Disney (and the other parties to the deal, if any) likely filed their HSRs late yesterday evening or will be making it this morning / today now that the transaction is announced. That will begin the waiting period so the next few weeks and you can almost guarantee there will be a large amount of chatter as to whether the deal will be objected to or not (most analysts expect there to at least be some strong pushback, whether formal or informal).

        Luke: Time permitting, I’d be happy to write a guest piece on this for you sometime with much more detail if you think it’s something readers would be interested in.

  3. Deon Hamner December 14, 2017 at 10:36 am #

    Good news if you are a sports and fan of marvel movies…

    • Duelingdragon December 14, 2017 at 11:36 am #

      I know some won’t, but I would have to disagree on both counts. For Sports, it just amounts to ESPN now leveraging their programming across all of their newly acquired regional sports networks. So not much of anything new except now Stephen A Smith won’t just be on ESPN & ESPN 2, but will be spread across multiple regional sports channels to annoy us throughout the day. As far as Marvel, this is a wolf in sheep’s clothing. Sounds great because the fans want to see wolverine fight hulk, but the reality is there will be a lot less movies and reduction of character roles. In the next 2 years, there will be 12 Marvel movies released. 6 of those not by Disney. Disney will not be making 12 Marvel movies every 2 years. Odds are it will still be 6, we will just lose some of the riskier, and arguably more enjoyable, ones. Ant Man and Guardians never would have been made had Disney had the complete Marvel assortment from the get go. They would have just made Avengers vs X-Men and such. Also, say goodbye to films like r-rated Deadpool and Logan. Fox didn’t care about selling Wolverine action figures. To Disney, that is all that matters. They will make the characters very kid friendly. I think this is bad on many levels for the consumer.

      • Deon Hamner December 14, 2017 at 11:45 am #

        I think you make some good points. But Marvel shows on Netflix are very edgy and R rated material. Especially for Deadpool, I don’t think you would want to tink with that formula. And god I hope with these RSN that ESPN would put on less and not more of Stephen A Smith. But I look at ESPN for games. The whole talking head/ hot take era, I’m not a fan of.

        • Duelingdragon December 14, 2017 at 1:26 pm #

          I am with you as far as the talking head ESPN programming. I wish it would go away and they’d just air games or more refined recap shows. The reality is that is not why ESPN wanted the regional channels. It is for the advertising revenue. They are already oversaturated with sports licenses, they aren’t picking up more. These channels are a way to spread what they already have nationally, First Take, etc. as well as the local ESPN Radio shows which will probably get the Mike & Mike type treatment, with no additional production cost and gain the regional advertising they don’t get with the ESPN3/WatchESPN app.

      • SS December 14, 2017 at 12:28 pm #

        Considering that Disney is already doing R-rated MCU content on Netflix, I don’t think it is impossible for them to have some r-rated MCU characters / movies like Deadpool.

        Most importantly, I hope they maintain the current Deadpool and merge him into MCU without doing a reboot, recast.

        • Duelingdragon December 14, 2017 at 1:33 pm #

          Though technically within the MCU, there is a different approach with the Netlifx model than having these types of films and content within proper MCU films. And if I am not mistaken, they are marketed as Netflix Originals with a Marvel name drop, not as Marvel Studios like the current MCU films. They definitely draw a line between those properties for obvious reasons. To Disney, MCU is for kids to sell toys and merchandise. In theory, could Ryan Reynolds’ Deadpool show up in Avengers, of course, and probably will. Would be a huge mistake to recast him. But he will certainly be toned down considerably.

          • SS December 14, 2017 at 2:35 pm #

            Technically, they didn’t “drop Marvel studios” from Netflix shows. None of their TV shows have Marvel studios on it. Marvel TV shows are made by Marvel Television and ABC Studios / ABC Signature Studio. This is the case for all Marvel shows including AOS, Agent Carter, Runaways etc in addition to the Netflix family. And even The Gifted and Legion use Marvel Television.

            I think Kevin Feigi is very smart and knows better than to recast Ryan Reynolds. I think Marvel could have some solo outings that are rated R; but when combined for a major Avengers film, they would make the character less R.

          • Duelingdragon December 14, 2017 at 4:21 pm #

            I never said they dropped it, I used the term “name drop”.

            I cannot ever seeing Disney make a Marvel movie like Deadpool or Logan.
            They can say right now they will, but I don’t see it happening.
            It would have to be very distant from the MCU proper.

          • pawdog December 15, 2017 at 11:27 am #

            Disney jumped into the grownup movie world years ago with Touchstone Pictures so they have made R rated movies in the past. Doesn’t mean they want to go that way with Marvel but the door is already open in that regard.

  4. Edward B December 14, 2017 at 11:35 am #

    What will happen with Fox Sports Go?
    How soon before a name change and shared ESPN programming for the former Fox Sports regional networks?

    • Duelingdragon December 14, 2017 at 11:40 am #

      I don’t think Fox Sports Go changes as Fox is keeping FS1, FS2, BTN. They will keep it for their national sports programming.

      • Chris December 14, 2017 at 10:06 pm #

        I use fox sports go for fox sports midwest. A regional station

  5. tbird2252 December 14, 2017 at 12:13 pm #

    $66.1 Bn. bargain for the Fox enterprise. Look for other suitors to come forward in the next few weeks. Bidding war will begin. Ruppert Murdoch is a sly ol’ fox and knows the $66.1Bn. is an opening salvo…

    • Respected Citizen December 14, 2017 at 10:39 pm #

      No it isn’t. Nobody but Disney is dumb enough to buy these old media in this climate.

  6. SS December 14, 2017 at 12:24 pm #

    Disney should just but they rest of Hulu and make it their official streaming service instead of creating a new one in 2019. Hulu is already well-positioned to be Netflix’s rival.

    But they NEED to change the Hulu interface.

    • Chris December 14, 2017 at 10:05 pm #

      The ui is water trash.

  7. Duelingdragon December 14, 2017 at 1:47 pm #

    I feel bad for everyone at Blue Sky Studios. I can see Disney just folding that. 500 people I hope don’t lose their jobs.