One of the original Big 5 distributors of cinema will be changing, after 21st Century Fox has been purchased for a hefty $71 billion by Disney.
It is has been a deal 15 months in the making. At long last, it has come to light that one of the original Big 5 distributors of cinema will be changing, after 21st Century Fox has been purchased for a hefty $71 billion by Disney.
Despite already being one of the largest names in a variety of situations, from cinematic discussions to general chats within the home, Disney have emphasised the transaction will aid the company to “increase its international footprint,” and “expand its direct-to-consumer offerings.”
Disney officially took possession of 21st Century Fox at 12.02am ET, and the deal includes the following assets: Twentieth Century Fox, Fox 2000 Pictures, Fox Searchlight Pictures, Fox Family, Fox Animation, Fox Television Creative Units, Twentieth Century Fox Television, FX Productions and Fox 21, FX Networks, National Geographic Partners, Fox Networks Group International, Star India and Fox’s interests in Hulu, Tata Sky and Endemol Shine Group.
CEO and Chairman of Disney, Bob Iger, declared in a statement on Tuesday afternoon: “This is an extraordinary and historic moment for us – one that will create significant long-term value for our company and our shareholders. Combing Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the preeminent global entertainment company, well positioned to lead in an incredibly dynamic and transformative era.”
Earlier on Tuesday, 21st Century Fox completed the finalities of the crossover of assets that were soon to be the property of Disney, and those that will comprise the foundation of Fox Corporation. Fox Corporation began trading on the Nasdaq as a single entity on the Tuesday morning. While Fox Corp shares opened at $41.55, and were down 3.2% at the close of its trading, to $40.34.
While Disney and Fox Corp begin to settle into a new world order for each of them, employees at both companies are beginning to brace themselves for the impact that is likely to come from large-scale layoffs in Burbank and Century City.
It has been noted that the number of cuts could reach figures as high as 4,000 jobs, though some members of 21st Century Fox will be able to maintain employment status within the new company, with decisions being made by Monday at the latest.
Bob Iger’s comment on this being a “transformative era” could not be more appropriate, as cinema undergoes once again some huge and permanent changes. It will be interesting to see how Disney takes this new mammoth opportunity for creativity in its stride.