Disney finalizes purchases of Fox
Alyson Merryman, Staff Writer
Disney and fox, two of the most elite corporations has made a deal this week. Over the past few decades the Disney corporation has increased its value and significance through the world. Disney is well-known for many popular movies including Lion King, all the Disney princess movies, and many more.
The Disney company is worth more than $168 billion but the value of the company will be increasing drastically soon. Disney has recently bought out the Fox production company. Disney’s Chief Executive Bob Iger has closed a deal with the Fox corporation at $71.3 billion. Iger took over the Walt Disney company back in 2005 and has been striving to be the best in Hollywood since then. Since he has been in this position, he has fixed many relationships with board members including Steve Jobs who is the cofounder of Pixar.
Iger has been slowly increasing Walt Disney’s brand name by buying out big name companies including Pixar in 2006 and also Marvel Entertainment in 2012. Disney will now be completely taking over Fox’s television and movie production and the rights and titles that belonged to the Fox Corporation.
In the Los Angeles Times, chief executive Bob Iger said, “This is an extraordinary and historic moment for us — one that will create significant long-term value for our company and our shareholders”.
Jessica Reif Ehrlich who is a media analyst stated that the entire industry was turned upside when Fox was sold. Fox Corporation wasn’t going big enough so they decided to past the companies name over who will make the corporation even bigger.
Over the past few years Disney has been trying to compete with other competitors like Netflix, AT&T, and Amazon. Netflix and Amazon have been trying to steal Disney’s business by making their own movies and shows. With Fox being boughten out, Disney has plans to compete with the other companies. Disney is releasing Disney+, which is a family streaming service that will be released in 2019.
The Disney and Fox deal has been in the making since 2017 but has just been formally closed since this past Tuesday. The Fox company still owns Fox news and the Fox broadcast network but the companies name will be changed to “Fox Corporation”.
The Los Angeles Times interviewed Michael Eisner and he said, “Disney probably has enough content in its arsenal with ‘Star Wars,’ Marvel and Pixar, but the Fox properties will help give Disney more global strength, in many ways, this is an insurance policy to help protect all of these assets and compete, globally, with Netflix, Amazon and, soon, Apple.”
Iger has high hopes since Fox has joined Disney but there are no guarantees what the outcome will be like. According to analysts, Disney will not be making a profit from this deal yet and is expected to be over $36 billion in debt to finance the deal. Since Disney is joining companies over 3,000 workers will be losing their jobs between Fox and Disney in order to cut costs from the expansion.