Disney and 21st Century Fox Finalize Merger for $71.3B
After one year, the entertainment business 21st Century Fox has completed their agreement to sell its assets to Disney for $71.3 billion.
This deal will help Disney be more competitive against other companies like Amazon and Netflix.
Disney will also get a 30% controlling stake with another streaming service Hulu. Disney already had 30% and now will have 60% majority control.
With this deal, Disney will be able to proceed with launching their own streaming service called Disney Plus. They expect to release it later this year and it is unknown how much it will cost per month for subscribers.
Hulu will still be used for more general programs. Disney Plus will focus on more family-friendly tv shows and movies. It will feature 5 categories: Disney, Pixar, Marvel, Star Wars and National Geographic.
Fox will now focus on the following three things — and these were not included in the deal — Fox News, Fox Business Network and Fox Sports.
Former House speaker Paul Ryan will join the board of directors for the new Fox Corporation.
Thousands of employees face layoffs because many Fox and Disney film-production staff have the same jobs.