Walt Disney and 21st Century Fox have settled on a closing date of March 20 for their transformative $71 billion media-asset deal. The deal involves Disney’s acquisition of Fox’s entertainment assets in exchange for Disney divesting Fox's 22 regional sports networks.
In light of the agreement, the companies confirmed that they are expecting Fox to distribute all issued and outstanding common shares of Fox Corp. to the 21CF shareholders at about 8 a.m. ET on March 19 on a pro rata basis. Following this, Disney’s acquisition of Fox’s entertainment assets will be effective at 12.02 a.m. ET on March 20, 2019.
Holders of the 21CF common stock will then be given a deadline of 5 p.m. on March 14 to elect the form of consideration they wish to receive in the acquisition.
According to the terms of the deal, Disney is likely to pick up the studio, a controlling stake in Hulu, a suite of entertainment channels like FX and Nat Geo and some other assets. While the remaining assets of 21st Century Fox will be spun off into a new company simply called Fox, which would have channels like Fox broadcast network, Fox News and Fox Sports.
Once complete, the deal is not just likely to bring cost synergies worth at least $2 billion by 2021, but is also set to result in employee layoffs in the range of ~5,000 people — some on the Fox side, others on the Disney side — owing to the consolidation.
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
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an operator of amusement parks, hotels, television stations and radio broadcasting stations
Industry MoviesEntertainment