Disney Closes $71 Billion Deal For Fox Entertainment Assets

Disney has acquired Fox’s entertainment business for $71 billion, which will put under one corporate umbrella the likes of ‘Cinderella,’ ‘The Simpsons,’ ‘Star Wars’ and ‘Dr. Strange’ to name a few pf the productions from both companies.

Disney’s purchase of the entertainment studios that created ‘The Simpsons and ‘X-Men’ will also put Disney in a better position to compete technologically with Amazon and Netflix for viewer attention and of course dollars.

The purchase will hopefully persuade viewers to sign up for yet another streaming service, Disney Plus, which will start its entertainment streaming service later on this year.

In order to draw viewers to Disney Plus, the company needed more TV shows and movies that are compelling even though it has classic Disney cartoons, ‘Star Wars,’ Pixar and the Muppets as well as a few Marvel characters. For instance, Disney could add other Marvel character like X-Men and Deadpool as well as Fox channel TV programs like FX Networks and National Geographic and some of Fox’s other productions like ‘The Americans,’ ‘This is Us,’ and ‘Modern Family.’

Disney’s acquisition of Fox’s entertainment business will likely shake things up in the media industry due to its release later this year of Disney Plus putting it in direct competition with Amazon and Netflix.  However, it will have a detrimental impact on the staffing situation as layoffs will naturally happen due to duplication in film-production staff between both companies.

The deal will also give Disney complete control from start to finish of all TV shows and movies, from creation to production, and distribution to all outlets from TV channels, theaters, streaming services, and any other way viewers watch media entertainment. Another benefit of course is that Disney will gain the information it needs of viewers personal data and viewing habits in order to sell advertising and draw in more profits.

For Marvel fans, the deal opens up the opportunity for Marvel’s X-Men and the Avengers to come together in future films because although Disney owns Marvel Studios a few characters such as X-men were under license to Fox. But now they will be together under the same roof.

The deal will also give Disney controlling input to Hulu’s streaming service which it plans to keep operating as a spot for general programing while it will send family-friendly programing to Disney Pus.

Pricing for Disney Plus has not been announced as yet but it will definitely have five streaming services:  Disney, Pixar, Marvel, Star Wars and National Geographic.

Keep in mind that the deal only includes Fox’s entertainment business.  It does not include the parts of Fox Corporation’s 21st Century Fox like Fox News, Fox Sports and Fox Broadcasting. Fox Corp. on Tuesday, started to trade on Nasdaq under the ticker names of ‘FOX’ and ‘FOXA.’