Disney’s Acquisition of Fox Gets Approval from China Sending Shares Flying

Shares of Disney were moving higher on Monday, about 1% before falling back into the red, on news that the company has received approval from China for its acquisition of Fox. Shares of Fox saw gains as much as 3% on the news.

Regulatory approval is still necessary from several other countries for Disney to acquire Twenty-First Century Fox assets, but receiving unconditional approval from China is a big success. The deal could be completed as early as next spring.

It was this past June that U.S. antitrust regulators approved the deal and EU regulators approved of the deal earlier this month.

It was last December that Disney initially announced a definitive agreement to acquire 21st Century Fox. The company beat out Comcast this year in a bidding war. Disney will pay $38 a share for its chosen Fox assets, split 50-50 in cash and stock, and it will also take on about $13.8 billion of Fox’s net debt.
This has led to a total transaction value of roughly $85.1 billion.

“To us, the fact that Disney went well above the current $35 per share Comcast bid with a 50-50 blend of cash and stock proves to any doubters how serious The Walt Disney Company is about acquiring these assets,” remarked veteran media analyst Michael Nathanson.

Disclaimer: We have no position in The Walt Disney Company (NYSE: DIS) and have not been compensated for this article.