- Disney beat out other companies circling 21st Century Fox's entertainment businesses, and will buy film and TV assets for more than $52 billion.
- Shares of both companies are rising strongly on the news.
- Watch
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Disney and Fox are up strongly after announcing their $52.4 billion deal (DIS, FOXA)
Disney has beat out other companies circling 21st Century Fox's entertainment businesses, and will buy part of Fox for more than $52 billion.
Disney announced its plan to buy 21st Century Fox's film and TV assets for $52.4 billion. Fox shareholders will receive 0.2745 shares of the new Disney and one share of the spun-off broadcast company for each current share of Fox.
Shares of Disney are up 2.62% at $110.46 and 21st Century Fox is up 4.31% at $34.15 in early trading on Thursday. The companies were trading down immediately after the news, but have since rebounded and are trading at their current levels.
Disney agreed to buy many of Fox's entertainment assets, including the film studio and a large chunk of the television properties. It leaves behind the broadcasting network and stations including Fox News and Fox sports channels, which will be spun off into a newly listed company immediately prior to Disney's acquisition.
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Disney said it will buy back $10 billion of stock to help stymie the dilution from the new Fox shareholders.
The deal is now pending regulatory approval, which isn't guaranteed as AT&T's $84.5 billion acquisition of Time Warner hit an unexpected roadblock from the US Department of Justice earlier this year.
Disney is up 0.44% this year while 21st Century Fox is up 12.81%.
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