Walt Disney Co. will purchase 21st Century Fox in deal that brings an end to era of the ‘Big Six’ studios. Disney Now takes ownership of one of the United States’ largest movie studios in a deal that solidifies their position as media super giant. With this deal Disney now owns seven of the top ten worldwide highest grossing movies of all time.
Founded in 1935 with the merger of Twentieth Century Pictures and Fox Films, the studio was in its earlier years known for stars like Henry Fonda and Shirley Temple and films including “Gentleman’s Agreement,” “The Sound of Music” and the Liz Taylor-Richard Burton epic “Cleopatra,” which became a cinematic icon but nearly bankrupted the studio during its troubled production. In 1977 it released “Star Wars,” the beginning of a relationship with George Lucas that would span six films and generate $4.6 billion at the box office.
There was so much more at stake here for Disney than the obvious rights to the X-Men and Fantastic Four brands. They now finally have the distribution rights for the original Star Wars trilogy and prequel trilogy. Most of those rights reverted back to Disney in 2020, but the original 1977 film’s rights would have remained at Fox.
Another bonus is the Avatar franchise. With an entire land devoted to the franchise holding ownership over it was of great importance to the company. James Cameron’s Avatar is a potentially massive film franchise that Disney already has a vested interest in seeing succeed. It means potentially huge business not just at the movie theater, but also when it comes to merchandise and theme park success.
Disney now get its hands on the FX channel. And of course the vast, impressive, lucrative library of Fox movies and TV series from past and present, to add to their upcoming streaming service and, probably, to deny those movies and series to Netflix, along with the Disney, Marvel, Pixar, and Lucasfilm properties.
Disney also gets Fox’s 30 percent stake in Hulu. Disney already has a 30 percent stake in Hulu, so that arrangement now gives the company majority ownership of the streaming platform. And as Disney prepares to launch its own streaming services in 2019, it could become an actual contender against Netflix by combining its existing content with Fox’s movie, television and sports content.
The Murdoch family will continue to maintain ownership over the sports and news divisions while Disney would get the studio rights to everything on the film side according to the report.
Only time will tell, but it seems Bob Iger has positioned Disney once again in a pivotal position in the market.