What Disney’s purchase of 21st Century Fox means to Disney fans

The Walt Disney Company and Twenty-First Century Fox, Inc. have announced an agreement in which Disney will purchase parts of Fox for about $52.4 billion in stock, as well as taking over $13.7 billion in Fox debt.

The deal is huge — not just because of the price tag, but because 21st Century Fox is so large.

Here is a breakdown of the deal and what it means to Disney fans.

What is part of the Disney purchase of 21st Century Fox deal?

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.

What is not part of the deal?

Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network are not part of the deal. They will be part of a newly listed company that will be spun off to Fox shareholders.

Who will be in charge of Disney?

Part of the deal has Robert Iger, the current head of Disney, remaining the top boss until 2021. He was supposed to leave the company in 2019, but this extends his tenure. After that, the job is up for grabs. There is some speculation that James Murdoch, the CEO of 21st Century Fox and chairman of Sky plc, could be up for the job. There has also been speculation that Bob Chapek, chairman of Walt Disney World Parks and Resorts, could be up for the job as well. But four years is a long time, so anything could happen.

How long will the deal take to be finalized?

This is complicated deal, with the need for another company to be formed and spun off to Fox shareholders. The Boards of Directors of Disney and 21st Century Fox have approved the transaction, which is subject to approval by shareholders of both companies, as well as clearance under the Hart-Scott-Rodino Antitrust Improvements Act, a number of other non-United States merger and other regulatory reviews, and other customary closing conditions. So we are looking at 12 to 18 months before the deal is finalized.

These are two different styles of companies; 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 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 hearts content.

The X-Men: This allows character 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 entire 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.”