Disney buys all Fox TV business in Latin America

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Walt Disney will buy select assets of 21st Century Fox for USD 52.4 billion in stock in a deal that accelerates Disney’s broader expansion into OTT and TV. Disney’s will purchase the company’s Twentieth Century Fox film and television studio and its international and cable TV businesses, including all Fox Networks Group Latin America.
The deal also gives Disney majority control of Hulu, as Disney also owns a 30% stake in the streaming giant. But that sets up a potential clash over the direction of the company with Comcast and Time Warner, who together own the remaining interest in Hulu. The expectation is that Disney will try to buy out those stakes, although Comcast may not be inclined to sell given that Disney intends to launch its own OTT services to compete with cable and other MVPDs. The new company also will include Fox’s Roku investment.
The Disney-Fox deal raises the prospect of a future in which media is dominated by a few giants: Comcast-owned NBC Universal, a combined Disney-Fox, and—if it survives the legal battle with the government—, the merger of AT&T-Time Warner, to face the growth of Netflix and Amazon.
A group of smaller companies, including CBS, Viacom, Sony Pictures Entertainment and Lions Gate Entertainment, could look to do their own deals to gain more scale and leverage in the industry.
Out of the deal will be the US free to air TV business: 21st Century Fox will spinoff Fox Broadcasting, Fox Sports in US, Fox News, Fox Television Stations and a handful of other assets into a new company that will have revenue of USD 10 billion and earnings of about USD 2.8 billion. The 20th Century Fox lot in Century City will also remain with the spinoff Fox company.
In the deal Disney also will assume about USD 13.7 billion of debt of 21st Century Fox. The deal is valued at USD 66.1 billion, Disney said.
Fox Networks Group Latin America includes a portfolio of Pay TV channels: Fox, FX, National Geographic, Fox Life, Nat Geo Kids, FXM, Cinecanal, Baby TV, Fox Sports, Fox Sports 2, Fox Sports 3 and Nat Geo Wild. Also the premium Pay TV channels developed by LAPTV (Moviecity) and now renamed Fox Premium Movies, Fox Premium Series, Fox Premium Action, Fox Premium Family, Fox Premium Comedy, Fox Premium Cinema and Fox Premium Classic. Latin America TV business has in addition two production companies: Fox Telecolombia and its subsidiary Estudios Telemexico in those two countries.

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