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What does the Disney-Fox deal mean for the Murdoch Empire?

It was announced yesterday that Walt Disney is buying Fox for $52 billion.

The Murdoch family are selling film and television assets from 21st Century Fox to the mass media conglomerate.

The multi-billion dollar deal will see Fox giving up their movie studios, television productions, sports broadcasts and European broadcaster Sky to Disney.

Rupert Murdoch will retain ownership of Fox News, Fox Sports, and other smaller news outlets across the U.S.

This leaves the family with a smaller company that is more narrowly focused on news and sport.

The purchase will lead to a major shift in the Murdoch Empire, and above all – the global media industry.

So why would the Murdoch’s agree to this deal?

Business analyst company Moffett Nathanson suggests that it may be due to declining revenue in some aspects of Fox.

They wrote: “Any honest observer has to be disappointed in Fox’s content cycle in film and on the Fox network over the past two years.

“As such, it makes sense to re-think 21st Century Fox’s asset mix now.”

The sale will mean that Fox is left with content that is protected from the threat of streaming and online advertisements – something that has reportedly been a concern for Rupert Murdoch since the online boom began.

Since talks of the deal were first reported, Fox’s shares jumped by over 30% – reversing the decline in recent years.

The deal also gives Fox shareholders – including the Murdoch’s an estimated 25% stake in Disney.

Disney aims to create more movies and television programmes with Fox, working towards their own online streaming service to compete with the likes of Netflix and Amazon.

The deal will give more power to the giant conglomerate Disney, and while it is clear to be beneficial to the Murdoch Empire – we, as the audience may begin to see a change in the content we watch.

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