Disney Stock Squeaks and Drops After Closing $71 Billion Fox Deal
Disney has finalized its $71 billion acquisition of Fox in a deal that will reshape the global entertainment industry.( Source: Drew Angerer/Getty Images
With Disney’s acquisition of Fox’s entertainment assets at a price of $71.3 billion, the House of Mouse has one less big Hollywood studio to compete against.
But despite the deal reducing the number of rivals and potentially increasing its market share, Disney‘s stock fell by nearly 3 percent after the deal closed. Though it slightly recovered in after-hours trading, the share had fallen 2.76 percent by market close to $110.
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Disney expects the deal to help it grow internationally. Among the assets that the entertainment giant acquired from 21st Century Fox that will assist in this endeavor include the Dutch-based media firm Endemol Shine Group famous for its hit reality show Big Brother. Others include India’s media conglomerate Star India and India’s satellite television provider Tata Sky.
Netflix-killer Disney+ Now has more Arsenal
Disney’s acquisition of Fox’s original content production businesses will also allow it to expand offerings of its planned Netflix-killer, Disney+. The chairman and CEO of Disney, Bob Iger, stated that the deal will result in ‘significant long-term value’ for the firm and shareholders:
Combining Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the preeminent global entertainment company,