Week 9: Disney & 21st Century Fox

Merger and Acquisition 

As of July 11th 2018, Disney has been reported purchasing 21st Century Fox assets with the form payment of cash and stocks. It is set that Disney has purchased Fox for the amount of $71.3 billion for the partial assets of Sky TV and Indie TV. As the factor that cause Disney in the acquisition of 21st Century Fox is that Disney wants to open a new streaming industry to create a new target market for more audience/viewers to increase Disney's brand image.


Image result for disney buys fox

As according to Statisca (2018), the numbers mention that over the years the amount of streaming user has increased consistently. It is so consistent that it's a bad decision if a investor actually decides to not invest at a streaming industry. As this is why Disney wants to start a streaming industry as due to the reason as today millennial are often addicted to games and online movies, as the 2012 data shows that there are 171.6 million users of online streaming in the US. While it is predicted during the year 2021 that there will be a total of an estimated of 239.2 million online streaming users in the world.  

Going back to the case of Disney's Acquisition of 21st Century Fox's asset. What is Acquisition? According to Cambridge Dictionary (Nd), Acquisition can be defined as the process of getting or earning something. This basically tell us that Disney is currently on the process of getting Fox's assets.

Many investor in Disney would've sold their shares to others as the dividend might decrease due to the current spending and cash outflow of Disney in the acquisition of Fox's assets, but if i was the investor at that Disney company i would not sell my shares as i believe at the short term the company will have struggles in getting dividends for the shareholders, but since Disney is a leading company in the movie industry and plays a huge role in everyone's daily life, as of the long term Disney would obviously get there dividend up again and even could provide shareholders a higher dividend in the future.

At the same time, if i was a investor investing in the 21st Century Fox. I wouldn't worry that my dividend will go down in the future, since some asset of my company is being taken and run by another company. As i believe that Disney is a world leading company that can lead and make good decision based on their action plans that will benefit Disney and at the same time benefit 21st Century Fox. In my opinion if i was the investor of both party i wouldn't be scared in having to sell my shares as i believe both parties will receive its benefits by the action of this acquisition, although my friends and other people things that this move that is done by Disney is bad since it was also stated that when the acquisition happens Disney did not provide a clear action plans in how the company wants to go forward in the future, but i myself hearing about this won't worry at all since Disney is a leading company in the world in terms of the movie industry and if something bad or not right happens like this case for example, Disney will obviously fix it and provide a better action plans for the future. 

In conclusion, i believe that it was the right decision for Disney in having acquisition with 21st Century Fox as Disney wants to start a online streaming industry that in the future can takeover leading online streaming company such as Netflix. In my opinion, by the decision and action taken by Disney, it's a win win solution for me since Disney wants to expand its market and it was also stated that Fox has a hard time in managing all those assets laying down at the company. What do you guys think? Is the move done by Disney beneficial to Disney or Fox, or both of the company. 




References List:


  • Cambridge Dictionairy (Nd), Acquisition, retrieved at https://dictionary.cambridge.org/dictionary/english/acquisition

  • Statisca (Nd), Numbers of digital video viewers in the United States from 2012 to 2021 (in millions), Retrieved at https://www.statista.com/statistics/271611/digital-video-viewers-in-the-united-states/



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