21st Century Fox & Disney Amend Acquisition Agreement
Dow 30 Component, The Walt Disney Company (DIS), and its subsidiaries is a diversified worldwide entertainment company that operates in four business segments: Studio Entertainment, Media Networks, Parks and Resorts, and Consumer Products & Interactive Media.
Walt Disney has signed an amended acquisition agreement with Twenty-First Century Fox, Inc. The new acquisition for $38 per share gives 21st Century Fox shareholders a cash or stock option in the combined entity. Disney will gain 21st Century Fox after the spin-off of “New Fox”.
The new agreement allows 21st Century Fox shareholders to elect to receive $38 in cash or share of Disney common stock. The stock consideration will be subject to a collar and is predicted to be tax-free to the 21st Century Fox shareholders. The rest of the 21st Century Fox businesses that are to be acquired by Disney will remain the same as the original agreement stated. The intrinsic value of the assets has increased since the original agreement was created due in part to the tax reform and operating improvements.
Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company stated, “The acquisition of 21st Century Fox will bring significant financial value to the shareholders of both companies, and after six months of integration planning we’re even more enthusiastic and confident in the strategic fit of the assets and the talent at Fox. At a time of dynamic change in the entertainment industry, the combination of Disney’s and Fox’s unparalleled collection of businesses and franchises will allow us to create more appealing high-quality content, expand our direct-to-consumer offerings and international presence, and deliver more personalized and compelling entertainment experiences to meet growing consumer demand around the world.”
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