Disney To Buy 21st Century Fox Assets For $52.4 Bln

(RTTNews) - Walt Disney Co. (DIS) has agreed to certain assets of Rupert Murdoch's Twenty-First Century Fox, Inc. (FOXA, FOX) for about $52.4 billion in stock, the two companies said Thursday.

Under the deal, Disney will acquire 21st Century Fox, including the Twentieth Century Fox Film and Television studios, along with cable and international TV businesses.

Immediately prior to the acquisition by Disney, 21st Century Fox will separate the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network into a newly listed company that will be spun off to its shareholders.

Under the terms of the deal with Disney, shareholders of 21st Century Fox will receive 0.2745 Disney shares for each 21st Century Fox share held by them. Disney will also assume about $13.7 billion of net debt of 21st Century Fox.

The acquisition price implies a total equity value of about $52.4 billion and a total transaction value of about $66.1 billion for the business to be acquired by Disney, which includes consolidated assets along with several equity investments.

Disney noted that the acquisition of these assets will allow it to create more appealing content and build more direct relationships with consumers around the world.

Several entertainment properties from 21st Century Fox will join the Disney family after the acquisition, including 21st Century Fox's film production businesses.

Disney will also acquire FX Networks, National Geographic Partners, Fox Sports Regional Networks, Fox Networks Group International, Star India and Fox's interests in Hulu, Sky plc (BSY.L, SKY.L), Tata Sky and Endemol Shine Group.

The companies said that prior to the close of the transaction, 21st Century Fox will seek to complete its planned acquisition of the 61 percent of Sky it does not already own.

Disney will issue 515 million new shares to 21st Century Fox shareholders, representing approximately a 25 percent stake in Disney on a pro forma basis.

The company expects to yield at least $2 billion in cost savings and add to its earnings for the second fiscal year after the deal closes.

Robert Iger has agreed to continue as chairman and chief executive officer of Walt Disney Co. through the end of calendar year 2021.