Wall Street is giving Disney and 21st Century Fox a flimsy thumbs up on Thursday morning, with shares of both entertainment giants slightly trading higher on news the Mouse House will acquire much of Fox’s TV and film business.
Shares of Disney (DIS) are up about one percent to around $109 a share in early morning trading, with Fox (FOXA) up 0.3 percent to about $33 a share.
This morning, Disney officially acquired much of 21st Century Fox for $52.4 billion in stock, with the mammoth deal closing after more than a month of talks. Both companies have enjoyed a healthy stock bump recently, with Disney jumping about five percent, while Fox has run up 12 percent.
The buyout infuses the Mouse House with a bevy of Fox properties, including its film and TV studios and much of its non-broadcast television business, including FX, regional sports networks and Nat Geo, among other channels. Top franchises like “X-Men,” “Avatar,” “Deadpool,” “Fantastic Four” and “The Simpsons” will also fall under the Disney umbrella. And once Fox’s Sky acquisition is completed, well, Disney gets that too.
Meanwhile, the remnants of Fox aren’t folding. Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network will be formed as a “new FOX” company that will be spun off to its shareholders.
Here are some more particulars for Wall Street types: Under the terms of the agreement, shareholders of 21st Century Fox will receive 0.2745 Disney shares for each 21st Century Fox share they hold. Disney will also assume approximately $13.7 billion of net debt of 21st Century Fox.
The total transaction value of this mega-deal is approximately $66.1 billion.
The acquisition has some industry experts predicting to TheWrap it makes Disney the “most powerful company” in Hollywood. If and when regulatory approval happens, it’ll be hard to argue against that.