Disney Soon to Take Over Entertainment World


James Falcone

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After a slow year, Walt Disney Studios has struck a $52.4-billion deal to buy Rupert Murdoch’s 21st Century Fox entertainment empire as an attempt to accelerate growth as an entertainment powerhouse and increase stock value. Throughout 2017, Disney’s stock has trailed the overall market by a significant amount due to a decline in cable network results. Disney plans on using this mega-merger to bounce back after a tough year and kick start business in 2018.

This deal would give Disney Fox’s movie studio and TV production assets, its entertainment cable networks, including FX and National Geographic, and Fox’s stake in the internet streaming service, Hulu. Disney would also acquire international assets, such as Fox’s 39% stake in Sky and Star Indian TV channels.

The deal does not include Fox broadcast, Fox News or Fox Sports 1, but Disney will be taking over Fox’s regional sports networks. Assuming that the deal goes through some time next year, Disney will become a media streaming giant that could change Hollywood entertainment and even challenge Netflix. Emarketer analyst Paul Verna explained how that might be possible, “The more desirable content they have, the better they will be able to compete in terms of trying to sell a subscription offering at a time there’s so much competition for subscription-based services.”

The remaining Fox assets are expected to merge with News Corp, which owns the Wall Street Journal, New York Post and Times of London. Since the deal went public, the stock market for Walt Disney has gone up by 7.7%, meaning there are a lot of investors excited to buy shares in the new Hollywood monopoly.

Some people are not as pleased, as this growing monopoly makes it almost impossible to compete in the entertainment business. Many see this merger as the beginning of a new Hollywood that will revolve around Disney production. Although this deal is very controversial to competitors in the production industry, it opens up a lot of doors for Walt Disney Studios to drastically increase sales, expand their empire and take over the entertainment world.  

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