It was an exciting day for Walt Disney after the company revealed that it has struck a deal with Twenty-First Century Fox Inc. to buy film, television, and international businesses from the company for $52.4 billion.
The transaction will be an all-stock deal and Disney has already said that it would buy up to $20 billion of its own
shares to offset dilution from the deal.
Every Fox stockholder will receive 0.2745 Disney shares for each share they held and will end up owning about a quarter of the Disney company.
While Fox shares have soared over 30% since the deal talks began in November, shares of Disney were only up bout 3% in early morning trading on Thursday when the news was announced.
The deal is expected to close in the next year to 18 months. As part of the deal Disney will acquire Fox’s film and television studios as well as its cable entertainment networks and internaational TV businesses.
Disclaimer: We have no position in The Walt Disney Company (NYSE: DIS) and have not been compensated for this article.