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Disney Fox Merger
Disney Fox Merger
Product Development
BUSINESS STRATEGY Market Penetration
Diversification
SWOT ANALYSIS
Strengths Opportunities
Brand Image Disney Stores & Expansions
Diversified Business Disney Park Establishments
Global Presence Disney+ : Disney’s Streaming Service
Weakness Threats
Weak Online Presence Local Competition
Target Audience Technology being a hindrance
Old Cartoon Characters Cultural dominated cartoon preferred more
ACQUISITION PLAN
Potential Targets
November 2017 December 2017 June 2018 October 2018 – March 20, 2019
January 2019
Disney begins talks with Disney announces an all- Comcast rejoins bidding Fox receives approval The deal was officially
Murdoch family stock $52.8 billion offer. and formally submits a from various regulatory completed.
Comcast & Verizon join Comcast drops out of the $65 billion, all cash offer, bodies globally, Brazil &
the bidding process as bidding process. targeting the same Mexico being last major
well. assets as Disney. hurdles.
Disney and Fox agree to
a new $71.3 billion deal,
50/50 cash-stock split.
DoJ approves the sale,
contingent that Disney
divest from Fox’s RSNs.
Valuation of Walt
Disney
Valuation of 21 Century
Fox
Consolidated
Valuation
Value of Walt Disney = $186 Billion
Final Offer
Total Transaction Price : $85.2 billion
$71.3 billion (50/50 cash-stock split)
Assumed Debt: $13.8 billion
New $38 per share acquisition gives 21st Century Fox
shareholders option to either elect cash or stock in the
the combined entity.
SYNERGIES
Controlling Stake in • The acquired 30% stake gives Disney a controlling stake in Hulu.
Hulu
INTEGRATION PLAN & RISKS