Disney is purchasing a big part of 21st Century Fox in the form of a deal. It promises to renovate the media industry and help the entertainment giant to stop the digital competitors such as Netflix.
Just a deal of $52.4 billion has combined the two biggest entertainment players of the Hollywood.
Foresight of Disney
This sale indicates the biggest change brought in the career of an octogenarian mogul Rupert Murdoch, who has cashed out after developing a big media empire. Disney, being a part of it, is adding the same to more prime entertainment assets. It fights with the upstart streaming services which have removed the traditional cable subscription model.
Disney is not just buying 21st Century Fox’s movie studio and regional sports networks, but also cable channels FX and National Geographic. Disney will also take over Fox’s stakes in Hulu and European pay-TV provider Sky (SKYAY).
21st Century Fox after Sale
21st Century Fox will detach the Fox broadcasting network, Fox Business Network, Fox News Channel and few National Sports Networks, before the closing of the deal. After this, it will transform into a new company and will rotate towards shareholders. The remaining property will merge with the News Corp in upcoming years.
The deal offers Disney to extend its content, especially in the field of streaming services. Additionally, Disney is planning to launch two separate streaming services, one for sports and other for entertainment. The planning will be executed just after the closing of the deal.