Disney-Fox Deal: $71 billion deal finally closes

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02:32

Disney's 71-billion-dollar merger with 21st Century Fox is official. The deal comes as Disney is set to launch its own direct-to-consumer site and seeks to take on tech giants in the battle to dominate the market for streaming content. Karina Huber has more.

Grossing 2.8 billion dollars worldwide, Avatar, released in 2009, is the Fox studio's biggest box office success. Now it belongs to Disney. But Disney's 71 billion dollar acquisition of Fox isn't about the box office. It's about winning the online streaming wars.

PORTER BIBB MANAGING PARTNER, MEDIATECH CAPITAL "It's the end of the studio system in Hollywood, which is 100 years old this year. It's a new age. It's all gone digital and it's all about content."

The acquisition of Fox gives Disney a whole treasure trove of films and TV shows as well as a majority stake in streaming site Hulu. The merger comes as Disney is set to launch its own direct-to-consumer site, Disney+, which will feature many of its family-friendly films. With the help of Fox's content, Disney hopes to go head-to-head with Amazon and Netflix.

TUNA AMOBI SENIOR ANALYST, CFRA "Netflix has seen the handwritten on the wall for quite some time, so we expect that they will do just fine."

The Disney/Fox merger comes less than a year after AT&T's 85-billion-dollar acquisition of Time Warner. Bibb says competition is leading to attractive subscription plans for consumers. But, he says that could change.

PORTER BIBB MANAGING PARTNER, MEDIATECH CAPITAL "Once the dust settles and it's clear who is going to run the game, whether it's Disney, Netflix, Amazon, or whomever, then the prices are going to start to go up."

KARINA HUBER NEW YORK "Experts say Disney's acquisition of 21st Century Fox will likely lead to even more consolidation in the industry. Apple is set to announce its streaming video plans next week, but it doesn't have much content. So many are speculating that it, too, will be in the market to buy. Karina Huber, CGTN, New York."