Disney and 21st Century Fox Stockholders Approve Acquisition

Today, on July 27, The Walt Disney Company and Twenty-First Century Fox announced that their stockholders have approved of Disney’s acquisition of Twenty-First Century Fox. The two companies set a special meeting today in Manhattan, which reportedly only lasted 12 minutes.

The Walt Disney Company’s acquisition of Twenty-First Century Fox cost the company $71.3-billion in cash and stock. Disney originally offered $52.4 billion in stock in December of 2017 but had the price driven up after they got into a bidding war with the Comcast Corporation.

Disney CEO Robert Iger said, “We’re incredibly pleased that stockholders of both companies have granted approval for us to move forward, and are confident in our ability to create significant long-term value through this acquisition of Fox’s premier assets.”

Executive Chairman of 21st Century Fox Rupert Murdoch said, “We are grateful to our stockholders for approving this transaction. I want to thank all of our executives and colleagues for their enormous contributions in building 21st Century Fox over the past decades.”

The Disney Merger Agreement is slightly complex. The agreement allows 21st Century Fox stockholders to receive $38 dollars per share in either cash or shares of New Disney, which is a “new holding company that will become the parent of both Disney and 21st Century Fox.” 21st Century Fox stockholders taking the stock option “will receive consideration equal to $38 in value if the average Disney stock price at closing is between $93.53 and $114.32.”

The acquisition has already been approved by the Justice Department, but the companies still are working on regulatory approvals from other government around the world. The sale is officially expected to be finalized by sometime in 2019.

Credit: Disney/Twenty-First Century Fox/Los Angeles Times