Disney to buy Fox

On Thursday, it was announced that the Murdoch family would be selling Fox to Disney. The move is expected to provide a significant boost in Disney’s assets and provide about $2.5 billion in synergies. Fox will be letting go of many of its entities that seem to have failed to keep up with times as they have been in decline and remain with only a select few channels and services. The deal is estimated to cost about $60 billion dollars and Fox stands to gain 25% of Disney  which is on its way to becoming an even greater business giant. The deal said to have been born out of a personal relationship between Disney’s Iger and Rupert Murdoch. A merger of this kind is likely to make the new company a top contender along with companies like Netflix and amazon prime which have escalated revenues through original productions. In essence it appears that the fox model was not working and it has now turned in favor of the likelihood of higher profits.The move is however not a done deal, it expected to undergo extensive regulatory scrutiny, due to its magnitude. There are also rumors that Murdoch who saw his take over of sky as unlikely due a need for parliamentary approval, is using this merger as an avenue to achieve this goal as it is likely to ameliorate the political contention of him taking it over personally due to his history as a news boss. 

http://www.bbc.com/news/business-42329731