Disney deal set to value Fox at more than $75 billion

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Walt Disney’s deal to buy film, television and international businesses from Rupert Murdoch’s 21st Century Fox will value the latter at over 40 US dollars per share, or 75 billion US dollars, a person familiar with the matter said.

The deal, which is set to be announced on Thursday, will end more than half a century of expansion by Murdoch, 86, who turned a single Australian newspaper he inherited from his father at age 21 into one of the world’s most important global news and film conglomerates.

Under the terms of the all-stock deal, Fox assets that will be sold to Disney, including the 20th Century Fox movie and TV studio, cable networks and international operations will be valued at around 29 US dollars per share, the source said on Wednesday.

Fox’s remaining assets, focused on news and sports, will be offered to existing Fox shareholders in a new company likely to be valued at more than 11 US dollars per share, according to the source, who asked not to be identified ahead of an official announcement.

Fox shares ended trading on Wednesday at 32.75 US dollars, giving it a market capitalization of around 60 billion US dollars. The Wall Street Journal first reported the exact terms of the deal.

The deal will mark a return by Murdoch to focus on the news business, his lifelong passion. Australian-born Murdoch inherited his father’s newspaper business in 1952 and transformed it over many years, acquiring premiere properties such as the Wall Street Journal, the Times and the 20th Century Fox movie studio.

Murdoch’s shift to selling assets rather than buying them has come as a surprise to many who expected him to hand over the businesses to his sons, James and Lachlan.

None of the Murdochs are expected to be given board seats at Disney, according to the sources.

Disney has been struggling to bolster its TV business as cancellation of cable subscriptions is pressuring its biggest network, sports channel ESPN.

The Fox deal brings marquee franchises inside the Mouse House, on top of Disney CEO Bob Iger’s previous purchases, including Pixar Animation Studios, Marvel Entertainment and “Star Wars” producer Lucasfilm.

Source(s): Reuters