Disney, Fox shareholders approve $71B sale, here is what it means for Disney

It took about 10 minutes today for shareholders of both the Walt Disney Co. and Twenty-First Century Fox to approve Disney’s $71 billion acquisition of 21st Century Fox.

While the shareholders gave their seals of approval at two separate shareholder meetings, the final transaction is still is not expected to be closed until next year. months away from closing.

In addition, the week, the two companies filed with Brazilian regulators to secure approval for the deal there.

The deal with Disney includes: The Twentieth Century Fox Film and Television studios, including: Twentieth Century Fox, Fox Searchlight Pictures, Fox 2000, National Geographic Channel, 20th Century Fox Television, FX network, Fox Networks Groups, Fox Sports Network, Star, Endemol Shine Group, 39% of Sky Television, 30% of Hulu, Hot Star and 30% of Tata Sky.

“Combining the 21CF businesses with Disney and establishing new ‘Fox’ will unlock significant value for our shareholders,” Rupert Murdoch, Executive Chairman, 21st Century Fox, said in a news release.

“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,”  Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company, said.

Here is what is means for Disney:

 Is this good for Disney?

Financially, this will be huge for Disney.

1. This brings to Disney a huge worldwide distribution network, including Sky, which serves nearly 23 million households in the UK, Ireland, Germany, Austria and Italy; Fox Networks International, with more than 350 channels in 170 countries; and Star India, which operates 69 channels reaching 720 million viewers a month across India and more than 100 other countries.
2. This brings an entirely new line of content. Disney and Pixar skew toward the lower end of the age spectrum. Fox will bring a more adult content, expanding the age spectrum and options for all. These properties include films such as “The Grand Budapest Hotel,” “Hidden Figures,” “Gone Girl,” “The Shape of Water” and “The Martian.” On television the shows include “The Americans,” “This Is Us,” “Modern Family,” and “The Simpsons.”
3. The new content provides a rich library for expansion of new distribution networks, such as the on-demand service being created by Disney with its BAMTECH platform.
4. This also provides more content for the theme parks (see below for more on that.)
5. The acquisition is expected to yield at least $2 billion in cost savings from efficiencies realized through the combination of businesses.

Will Disney water down the movies and TV shows Fox makes?

Chances are no. Disney has a history of creating and releasing more adult fare, but not under the Disney name. And remember, these movies and shows will be under the current studio labels. While Disney did not know how to handle Miramax and Touchstone films when it owned them, it has learned how to let individual brands grow on their own.

What characters and popular franchises does this bring over to Disney?

Avatar: Disney now does not have to worry about using any of the films in future attractions at theme parks and can cross-promote to its heart’s content.

The X-Men: This allows characters to be used in theme parks and cruise lines. The series is also most likely looking for a reboot and entering into the Marvel Cinematic Universe could lead to an entirely new look.

Fantastic Four: This franchise could use some help and would be a good fit into the MCU.

Deadpool: The R-rated wisecracking character could be on his own, but could also use see visits from other characters as well.

Ice Age: This is a great fit for the Animal Kingdom. Couldn’t you see Scrat as one of the new mascots of the park?

Here are some others: Planet of the Apes, The Simpsons (though, they are locked in at Universal Studios for theme parks), Titanic, Modern Family, Homeland and American Horror Story.

What does this mean for Disney theme parks?

1. This now means a larger lineup of Marvel characters available for theme parks and cruise lines.
2. Disney will now own all of the Avatar films and could see some huge expansion at Animal Kingdom.
3. Can you say Scrat and “Ice Age” characters at Animal Kingdom?
4. Having the National Geographic brand will be beneficial with Animal Kingdom storytelling. In a few years, maybe you add National Geographic stations for kids to collect patches to go with Wilderness Explorers from “Up.”