Disney and 21st Century Fox acquisition: How it will shake Hollywood
The state of Hollywood to shake; Disney has announced plans to acquire parts of 21st Century Fox. Here is a look at what that means for the consumer and the impact of entertainment on streaming services such as Netflix and Hulu.
Mickey Mouse and Wolverine are about playing nice, in a way. Today, December 14, the Walt Disney Co. and Rupert Murdoch’s 21st Century Fox have agreed to a $52.4 billion deal in which Disney will acquire many valuable assets of the Fox empire.
As part of the deal, Disney will acquire the Fox film and TV production company, popular channel, Star India, as well as a 39-percent stake in the European broadcaster Sky. Disney now also in the possession of a number of Fox’s pay-TV channels, including FX, and National Geographic. Disney is not all Fox has to offer, but if Murdoch will still be the Fox News channel, the Fox broadcast network in the U.S., and the FS1 Sports network, as part of a new company, a spin-off from 21st Century Fox.
This deal also means Disney now has a majority stake in Hulu, a coup for the 94-year-old media conglomerate as it prepares to start with a few of her own streaming services dedicated to the growing library of content. In November, Disney started to pull the movies from Netflix in preparation for its own streaming service, expected to launch in 2019. This deal means films from 21st Century Fox franchises like the X-men could only be featured on Disney’s upcoming streaming service, and the Marvel superhero properties previously owned by Fox, including X-Men, Deadpool, and Fantastic Four — could be integrated into Marvel Studios’ cinematic universe.
This deal will also include Disney one of the largest players in the sports television. The company is the owner of ESPN, and in November announced plans for the launch of a stand-alone streaming service for the sports network named ESPN Plus— in the spring of 2018. With the acquisition of Fox broadcast networks, Disney now also owns many of the local Fox networks air local baseball and basketball games.
More From Digital Trends
Disney is starting its own streaming service, pulling content from Netflix
Ball ’till you fall (asleep) with ESPN Plus, a stand-alone streaming service
Disney’s Deadpool? What can happen if Disney buys 21st Century Fox
As historic as this agreement is, it is not done, yet.
The Ministry of Justice, will deal with an evaluation of the legislation, which would reportedly take over a year, but it may take longer given the department’s recent involvement with the major media mergers. The Ministry of Justice sued to block the $85 billion merger of AT&T and Time Warner a year after the two companies agree on the deal. The Department filed in the lawsuit on the belief AT&T would use Time Warner’s popular programming to drive up the prices for the customers.
Disney beat out Comcast and Sony Pictures in the bidding war for the prized Fox assets. If all goes well with the Ministry of Justice, the entire entertainment landscape will change in 2018 and beyond.