Disney closes $71bn takeover deal of Fox

Disney has closed its $71bn (£54bn) acquisition of Rupert Murdoch’s entertainment business in a deal that unites franchises including Cinderella, The Simpsons, and Star Wars under one corporate roof to create a media behemoth of unprecedented scale.

The Walt Disney Company closed its acquisition of 21st Century Fox shortly after midnight New York time on Wednesday.

As part of the deal, Disney will absorb the Fox film and TV studios, the FX networks, National Geographic, and the Indian TV giant Star India in a huge boost to its content.

By buying the studios behind The Simpsons and X-Men, Disney aims to better compete with technology companies such as Amazon and Netflix for viewers’ attention - and dollars.

It plans to launch its new streaming service Disney Plus later this year as it challenges Netflix for future audience share.

Disney needs compelling TV shows and movies to persuade viewers to sign up and pay for yet another streaming service. It already has classic Disney cartoons, Star Wars, Pixar, the Muppets and some of the Marvel characters. With Fox, Disney could add Marvel’s X-Men and Deadpool, along with programs shown on such Fox channels as FX Networks and National Geographic. Fox’s productions also include The Americans, This Is Us and Modern Family.

The deal helps Disney further control TV shows and movies from start to finish - from creating the programs to distributing them through television channels, movie theatres, streaming services and other ways people watch entertainment. Disney would get valuable data on customers and their entertainment-viewing habits, which it can then use to sell advertising.

Disney CEO Robert Iger said in an earnings call in February that Disney Plus and other direct-to-consumer businesses are Disney’s "No. 1 priority".

“This is an extraordinary and historic moment for us – one that will create significant long-term value for our company and our shareholders.

“Combining Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the pre-eminent global entertainment company, well-positioned to lead in an incredibly dynamic and transformative era.”

The move instantly cut the number of major Hollywood studios, ending the era of the “Big Six”. Warner Bros, Universal, Sony Pictures and Paramount Pictures now make up a Big Five with Disney.