14 Dec 2017
Bob Iger extends contract to 2021 as Disney acquires Fox in US$52.4bn mega-deal
BY Tom Anstey
Disney has confirmed a US$52.4bn (€44.27bn, £39bn) mega-deal with Fox, acquiring Twentieth Century Fox Film and Television studios, along with Fox's cable and international TV businesses.
The company also announced that Bob Iger will extend his tenure as Disney chair and CEO.
The deal means 21st Century Fox will separate from the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network into a newly listed company.
The Fox acquisition sees Disney acquire a huge media library and the distribution rights to the first Star Wars film and the film rights to the Fantastic Four and X-Men franchises – two IPs not obtained through its previous multi-billion dollar acquisitions of Lucasfilm and Marvel.
It also acquires Avatar, which debuted as a new attraction at Disney’s Animal Kingdom earlier this year.
“The acquisition of this stellar collection of businesses from 21st Century Fox reflects the increasing consumer demand for a rich diversity of entertainment experiences that are more compelling, accessible and convenient than ever before,” said Iger.
“We’re honoured and grateful that Rupert Murdoch has entrusted us with the future of businesses he spent a lifetime building, and we’re excited about this extraordinary opportunity to significantly increase our portfolio of well-loved franchises and branded content to greatly enhance our growing direct-to-consumer offerings.
"The deal will substantially expand our international reach, allowing us to offer world-class storytelling and innovative distribution platforms to more consumers in key markets around the world.”
Iger had been set to step down from his position in 2019, even telling the media “this time I mean it” after extending his contract in search of a successor.
When Disney started negotiations with Fox over the takeover, James Murdoch emerged as a contender to the Disney throne, with reports also linking Bob Chapek to the role.
At the request of both Fox and Disney’s boards, Iger has agreed to continue in his role until 2021 – a position he had originally intended to vacate in June 2018.
“When considering this strategic acquisition, it was important to the board that Bob remains as chair and CEO until 2021, to provide the vision and proven leadership required to successfully complete and integrate such a massive, complex undertaking,” said Orin C Smith, lead independent director of the Disney board.
“We share the belief of our counterparts at 21st Century Fox that extending his tenure is in the best interests of our company and our shareholders, and will be critical to Disney’s ability to effectively drive long-term value from this extraordinary acquisition.”
According to Disney, the acquisition is expected to yield at least US$2bn (€1.69bn, £1.49bn) a year in cost savings from efficiencies realised through the combination of businesses.
“We're extremely proud of all that we have built at 21st Century Fox, and I firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace in what is an exciting and dynamic industry,” said Rupert Murdoch, executive chair of 21st Century Fox.
“I’m convinced this combination, under Bob Iger’s leadership, will be one of the greatest companies in the world. I’m grateful and encouraged that Bob has agreed to stay on, and is committed to succeeding with a combined team that is second to none.”
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