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Chinese regulators approved the Walt Disney Company's acquisition of the $ 71.3 billion acquisition of a large portion of 21st Century Fox's film and television assets, removing a major hurdle to the deal large-scale deal between the media giants.
The news has wreaked havoc on the shares of both companies, pushing Disney shares up to $ 117.08, up 0.77% and Fox shares up more than 3% to $ 49.63. Disney said it's expecting its purchase of Fox's key brands such as NatGeo, FX and 20th Century Fox to be finalized in the first half of 2019. Disney said the operation had received "unconditional approval".
The investment community feared that the escalation of the trade war between President Trump and China would break the antitrust approval process of the powers in place in Beijing, slowing down a pact that should transform the entertainment landscape. The agreement will allow Disney to access leading film brands such as Avatar and X-Men, as well as TV hits such as "Atlanta", "It's Always Sunny in Philadelphia" and "American Horror Story". ". Fox's remaining assets, which include Fox News and Fox Broadcast, will be transformed into a new independent company.
China has been a key market for Disney. In 2016, the company opened Shanghai Disney Resort, its first park of attractions in mainland China. At the same time, China has become a major source of box office receipts, becoming the second largest market for the film and contributing to Disney's latest releases such as "Black Panther" and "Avengers: Age of Ultron. "
CNBC first reported that the agreement had been approved by Chinese regulators.
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