Rupert Murdoch's "Disney Deal"(25)

Rupert Murdoch reshapes media empire with $66bn Disney deal

Murdoch has begun the breakup of his global media empire, announcing a $66bn (£50bn) deal with Disney to sell assets including his Hollywood film studio and a controlling stake in Sky. Disney is buying the bulk of Murdoch’s 21st Century Fox media and entertainment business, in a significant strategic withdrawal for the Australian-born mogul after 60 years of deal-making and expansion from newspapers into film & TV.

• The deal marks a significant moment in Murdoch’s dynastic ambitions, as his younger son, James, 45, the chief executive of 21st Century Fox, has in effect been carved out of the line of succession after two decades with the business. The elder son, Lachlan, 46, is left as executive heir to the remaining Murdoch empire, which includes the Fox News network, and newspapers including the Sun, Times and Wall Street Journal.
• Claire Enders, the chief executive of Enders Analysis, said: “It is a fundamental parting of ways between James and his father, the result over a period of time of the development of many differences between them that have become accentuated. Fundamentally, Rupert believes his son has not made a great fist of running the entertainment assets. The issues of the past look to have cost James’s ambitions in the present again.”
• The all-stock deal will result in the Murdoch family trading control of 21st Century Fox for a 4.25% stake in Disney, which has reinforced its status as the world’s most powerful media brand.
• “Are we retreating? Absolutely not,” said Rupert Murdoch in a conference call. “Those who know me know I am a news man with a competitive spirit. Fox News is probably the strongest brand in all of television. We are pivoting at a pivotal moment.”
• Disney will also get Fox’s 30% stake in Hulu, taking its control of the US on-demand service to 60%. It is paying $52.4bn in stock, including $13.7bn in debt. The total value of the deal is $66bn. Disney said it expected the deal to be complete in 12 to 18 months and it would generate $2bn in cost savings.