21st Century Fox Shareholders Endorse Walt Disney's $ 96 Billion Agreement

New York | 21st Century Fox shareholders, including the Murdoch family, approved the sale of the company's entertainment badets to Walt Disney, which brought together one of the largest media mergers in history [19659003]. Transaction of $ 3 billion ($ 96 billion) in separate votes at the New York Hilton Midtown in Manhattan. It should close in the first half of next year, according to Fox. In the end, a new Fox will appear focused on television, sports and the Fox News Channel.

None of the leaders of the two companies made an appearance. Fewer than 70 people attended the Fox meeting, led by Attorney General Gerson Zweifach. Chief Financial Officer John Nallen, one of the leading architects of the operation, was also on hand. A shareholder read an ode to Fox's executive chairman. "Nobody does it like Rupert Murdoch," he said. "I love Rupert Murdoch."

At the Disney meeting, Attorney General Alan Braverman and CFO Christine McCarthy led the show, although the chief architect of the merger, Kevin Mayer, head of the division. Some 99% of Disney investors who voted approved the deal. During a brief period of questions and answers, one of them said that Disney had overpaid up to 10 billion US dollars. The meeting lasted less than 10 minutes.

Disney's General Manager, Robert Iger, must now focus on the many outstanding issues to complete the merger and prepare his company for life afterwards. Here are some of his remaining challenges:

Advertisement

To gain regulatory approval in the United States, Disney agreed to divest Fox's 22 regional sports channels. The company already owns ESPN, the largest sports network. Bidders for properties, which could reach $ 20 billion, can include companies backed by billionaire John Malone, private equity and regional broadcasters.

Some badysts also see the possibility that Iger will seek to enter into an agreement with Comcast on the company's 30% stake in Hulu. When the Fox transaction ends, Disney will become the majority owner of the video streaming service.

Although Comcast said last week that it will not continue to bid for Fox's badets, the Philadelphia cable television giant has the highest bid. table for UK satellite TV provider Sky to US $ 34 billion. Disney acquires 39% of Sky through the agreement with Fox and still has an offer on the table for the broadcaster.

Some badysts have suggested that Iger cedes Sky to Comcast, releasing Disney's $ 19 billion Some badysts have suggested that Iger could cede Sky to Comcast, releasing Disney from the $ 19 billion US or so it should. .. ” width=”620″/>

Disney has promised to generate savings of $ 2 billion through the merger, which will bring together two of the six largest Hollywood studios.

This has created a lot of anxiety at Fox and Disney, where the overlapping marketing, advertising sales and distribution departments in their respective film and television production units could result in hundreds or even thousands of job cuts. Fox had 21,700 employees at the end of the year, according to data compiled by Bloomberg, while Disney had 199,000.

Some leaders are already negotiating their future, Fox Networks president, Peter Rice, should badume the same role. business, with the exception of ESPN. Dana Walden, co-founder of Fox TV, should lead his television production business

Disney has dominated the global box office in recent years, thanks to the series of successes of Marvel, Pixar and "Star Wars". Post-Fox, Disney's studio head Alan Horn will have to make choices on the newly acquired greenlight franchises, including "Avatar", "Planet of the Apes" and "Alien", who could also be ripe for the expanded merchandise and the theme

Fox has produced several movies based on licensed characters from Marvel, including X-Men and Wolverine images and two "Deadpool" movies. These rights will return to Disney with the merger.

Disney was given permission to buy Fox badets from the US Department of Justice, but was also awaiting approval from the Federal Communications Commission.

In addition, the company said in a recent filing, it may require the consent of regulators from 14 countries and the European Union.