Acquiring the Fox assets likely marks the largest move in Iger’s 14-year stewardship of DisneyGETTY IMAGES
Disney has closed on its $71.3B "acquisition of the major entertainment assets of 21st Century Fox" and will now "control Fox’s movie and television production studios, as well as its FX cable network, Fox Searchlight label and National Geographic properties," according to Schwartzel & Flint of the WALL STREET JOURNAL (3/20). In L.A., Meg James writes the acquisition is the "boldest -- and riskiest" -- of Disney Chair & CEO Bob Iger’s 14-year stewardship of the company. Analysts said that the consolidation "highlights massive shifts that are underway in media." Merrill Lynch media analyst Jessica Reif Ehrlich said, "When the Murdochs decided to sell Fox, the entire industry was turned upside down. The message was: 'You either need to get bigger -- or get out.'" James notes it is "not certain that Iger can seamlessly integrate the cultures of two very different companies -- or whether Disney will be as formidable a competitor as it takes on the streaming giants that have upended the industry" (L.A. TIMES, 3/20).
IMPACT ON SPORTS: In N.Y., Brooks Barnes writes Iger has "staked his legacy on this deal." The acquisition is the "largest in Disney's 96-year history." Disney is now "trying to become less dependent on cable channels like ESPN, which are in slow, steady decline owing to cord-cutting" (N.Y. TIMES, 3/20). The L.A. TIMES' James notes Disney must now sell the 22 Fox RSNs, including YES Network. A source said that Disney has 90 days to sell the RSNs but would "like to identify a buyer within a month" (L.A. TIMES, 3/20).
