Disney buys 21st Century Fox assets for $68.3 billion from Rupert Murdoch

DONALD Trump called Rupert Murdoch shortly after the News Corp chairman sold 21st Century Fox to Disney, to tell him what he thought of the $68.3b deal.

Rupert Murdoch has struck the biggest deal of his career in a $68.3 billion agreement to sell assets from 21st Century Fox to Disney.

NOT long after signing off on a $68.3 billion dollar deal to sell the key film and television assets of 21st Century Fox to Disney, News Corp Chairman Rupert Murdoch received a congratulatory phone call from Donald Trump.

Mr Trump told Mr Murdoch he welcomed the deal.

President Trump’s spokeswoman Sarah Sanders told reporters at a White House briefing: “I know that the president spoke with Rupert Murdoch earlier today, congratulated him on the deal, and thinks that — to use one of the president’s favourite words — that this could be a great thing for jobs.”

The blockbuster stock transaction leaves Mr Murdoch with a group which includes the Fox broadcast network, Fox News Channel and sports channels.

Chief executive officer and chairman of The Walt Disney Company Bob Iger and Mickey Mouse at the New York Stock Exchange last month.

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 chief executive Robert Iger in a statement.

Iger, who was previously expected to step down in 2019, will now stay on through 2021.

Disney’s move to acquire the Fox library of content is seen as a bid to bolster its arsenal against Netflix and Amazon as well as emerging tech players such as Facebook and Apple, which are cashing in on a move towards streaming services and away from traditional pay TV packages.

Disney, which owns the ABC television network, ESPN and has major studios in Hollywood, has been preparing to launch its own streaming service.

The merger makes Rupert Murdoch a key shareholder of Disney stock.

Independent media analyst Alan Wolk saw a number of positives for Disney in the deal, which gives it a controlling 60-percent stake in America’s third-largest streaming platform, Hulu.

By controlling Hulu, Disney gets “a platform with which to take on Netflix and Amazon, particularly internationally” as well as “a whole lot of data about their users, something they have not previously had,” Wolk said.

“If Disney includes live sports with Hulu, that could give it a huge edge over Netflix and Amazon.”

Disney is buying a large part of the Murdoch family's 21st Century Fox as it tries to meet competition from technology companies in the entertainment business.

Mr Murdoch said a statement: “We are extremely proud of all that we have built at 21st Century Fox, and I firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace in what is an exciting and dynamic industry.”

The “new Fox” will be “a growth company centred on live news and sports brands, anchored by the strength of the Fox Network.”

Mr Murdoch said: “It is born out of an important lesson I’ve learned in my long career in media: namely, content and news relevant to viewers will always be valuable.”

It will also include broadcast and cable rights to sports from the National Football League, Major League Baseball, World Cup football and Nascar.

Originally published as Disney buys 21st Century Fox assets for $68.3 billion from Rupert Murdoch