After Walt Disney Co. purchased Twenty-First Century Fox’s film, television, and international businesses for $52.4 billion Thursday, NewsCorp chairman Rupert Murdoch said the media empire will be reduced to about one-third of its current size.
The refurbished Fox will still bring in $10 billion in annual revenue, and retain a market value of at least $20 billion, according to Reuters.
“Are we retreating? Absolutely not,” Murdoch told investors Thursday. “We are pivoting at a pivotal moment.”
Chief executive of Fox shareholder GAMCO Investors Inc, Mario Gabelli, told Reuters he is not concerned about the downsizing and said Fox will still remain bigger than some of its other media competitors.
The deal still needs to be approved by federal regulators, but if it goes through it will provide Disney the opportunity to create a streaming service to compete with the likes of Netflix, and Amazon Prime. Disney will receive Fox’s movie studio, spots networks, FX, the National Geographic channel, Fox’s share of Hulu, Sky of Britain and Star of India.
The Fox News Channel and Fox Business network will remain independent and be a part of a separate company going forward.
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