Disney and Fox shareholders approve $71.3B merger

Lawrence Kim
July 27, 2018

As expected, the Disney and Fox Studios merger has gone through as shareholders voted today on both sides to approve the deal, which sees Disney getting the Fox Studios assets including Marvel, James Cameron's Avatar and the FOX TV networks.

Disney received approval from the Department of Justice for its historic acquisition past year, putting to bed any fears of government intervention in the corporate mega-merger.

"We're incredibly pleased that shareholders of both companies have granted approval for us to move forward, and are confident in our ability to create significant long-term value through this acquisition of Fox's premier assets", said Robert Iger, Chairman and Chief Executive Officer, The Walt Disney Company. "With [all of our executives and colleagues"] help, we expect the enlarged Disney and new "Fox' companies will be pre-eminent in the entertainment and media industries".

With this deal, Disney will get ownership of 20th Century Fox movie and television studio, Fox's 22 regional sports channels, (Disney has now agreed to sell of the 22 regional sports networks as part of a DOJ deal), cable channels including FX and National Geographic, and Fox's portfolio of global operations, including a fast-growing pay-TV service in India.

Now the latest development of shareholder approval clears the path for the Disney-Fox deal to be finalized in early 2019.

Fox Broadcasting, Fox News and most of the Fox Sports assets will be spun off into a new company, New Fox, owned by 21st Century Fox shareholders and operated by the Murdoch family.

Disney also agreed to leave out Fox's roster of 22 regional sports channels, as well as a number of live news and entertainment companies under the Fox umbrella. 21st Century Fox is home to popular franchises such as X-Men , Deadpool , The Simpsons, Ice Age and Planet of the Apes. In 2017, Disney's Buena Vista held a dominant 21.8% of the movie market share, while 20th Century Fox held 12%.

Other reports by Click Lancashire

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