It was recently announced that Disney is buying most of 21st Century Fox for $52.4 BILLION! That’s right! Talk about a whopper of a deal that will combine two big Hollywood giants. Robert Murdoch looks to be cashing out and Disney looks to be adding streaming services to compete against giants like Netflix.
There’s just one little factor….before Disney announced that it had finalized the purchase of Rupert Murdoch’s 21st Century Fox for $52.4 billion, Murdoch reportedly reassured President Donald Trump that Fox News would NOT be part of the sale.
The Fox TV network, Fox News, Fox Business, Fox Sports and Fox’s regional U.S. stations will not be part of the sale to Disney and will instead make up a different entity called New Fox.
During Thursday’s White House news conference, press secretary Sarah Huckabee Sanders also confirmed a discussion occurred between Trump and Murdoch.
“I know that the president spoke with Rupert Murdoch earlier today, congratulated him on the deal, and thinks that … this could be a great thing for jobs and certainly looks forward to and hoping to see a lot more of those created,” she said.
Sid Blumenthal, who served an aide to former President Bill Clinton, was not surprised that Trump and Murdoch talked.
“His entire empire’s at stake — that’s why Murdoch is talking to him every day,” Blumenthal told The U.K. Guardian. “It’s not because he enjoys the sparkling conversation of Donald Trump.”
In an investor call Thursday, Disney said it expected to save $2 billion because of the deal, Axios reported.
Trump’s blessing of the Disney-Fox merger is in contrast to his feelings on the proposed deal between AT&T and Time Warner, which owns CNN.
Trump has continually called CNN “fake news,” especially after multiple errors were made by the network recently.
Last month, the Justice Department sued to block the $85.4 billion merger between AT&T and Time Warner.
There has not been any evidence that Trump’s feelings toward CNN have influenced the Justice Departments objections, but there could be questions about what was said between Trump and Murdoch if the Justice Department opposes one merger and not the other, according to Axios.
Twitter users chimed in about the news of Murdoch’s reported promise to Trump.
Trump spoke with Murdoch ahead of Disney deal to make sure Murdoch wasn’t selling Fox News, person briefed on the call said
Very astute of Trump. He knows Fox News is under their entertainment wing.
So corrupt. The horizontal expansion not a concern here, but the DOJ is all over AT&T/Time Warner deal, which is vertical.
My understanding is Fox News and the cable sports networks will be spun off into their own private company. Hard to see this lasting long as a freestanding enterprise.
President Trump on Thursday gave billionaire Rupert Murdoch his blessing over the decision to sell a large chunk of his Twenty-First Century Fox empire over to the Walt Disney Company.
Trump reportedly signaled his approval after Murdoch assured him that the Fox News Channel, the president’s favorite source of information, would remain unaffected, according to Vanity Fair.
Disney struck a deal to buy film, television and international businesses from Twenty-First Century Fox Inc for $52.4 billion in stock, giving the world’s largest entertainment company an arsenal of shows and movies to combat growing digital rivals Netflix Inc and Amazon.com Inc.
This is a HUGE deal for Disney and Fox. Disney needed Hulu to help with the competition’s – Netflix and Amazon – streaming. For Disney, this really keeps them in the game.
The deal still will needs to undergo regulatory review and will likely take at least a year to close. The Justice Department will still have to consider to what extent the new company could dominate the market, using its increased leverage to force cable companies and distributors to pay higher rates to carry Disney and Fox content.
We’ll just have to wait and see what happens. See where the dust settles and watch where these two giants end up in a few years. In the future, let’s hope Conservatives can continue to depend on the New Fox to get at least some conservative news.
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