Following Disney’s $52.4 billion acquisition of certain 21st Century Fox assets, what’s left over will be branded New Fox and will focus on news, sports and broadcast.
New Fox will comprise of Fox News, Fox Business, Fox Sports, Fox Broadcasting Company, Fox Television Stations Group, FS1 and FS2, Fox Deportes and Big Ten Network.
Disney will take ownership of film businesses including Twentieth Century Fox, Fox Searchlight Pictures and Fox 2000, and television creative units, Twentieth Century Fox Television, FX Productions and Fox21.
Disney will also acquire FX Networks, National Geographic Partners, Fox Sports Regional Networks, Fox Networks Group International, Star India and Fox’s interests in Hulu, Sky plc, Tata Sky and Endemol Shine Group.
But 21st Century Fox Executive Chairman Rupert Murdoch said the deal does not amount to his family leaving the media business.
“I know a lot of people are wondering, ‘Why did the Murdochs come to such a momentous decision?’” said Murdoch today during a press conference. “Are we retreating? Absolutely not. We are pivoting at a pivotal moment.”
Murdoch said that New Fox will stay committed to offering the kind of news, sports and broadcast content it is known for.
“Through today’s announcements, we are proud to recommit to that promise and enable our shareholders to benefit for years to come through ownership of two of the world’s most iconic and dynamic media companies,” Murdoch said.
New Fox will retain its popular cable news channel, a stations group that is present in 9 out of the 10 largest metro areas in the U.S., and long-term sports rights to the NFL, MLB, World Cup soccer and NASCAR.
Prior to completion of the spin-off, New Fox will pay an $8.5 billion cash dividend to 21st Century Fox, according to a news release.