Disney the Streaming Media Giant (Part 2)

Disney is at it again. Disney buys a $52.4 BILLION stake in 21st Century Fox. This is another move towards Disney becoming Disney the Streaming Media Giant (Part 2). The Disney-Fox deal improves Disney’s ability to compete directly with Netflix, HBO, and Amazon Video.

And there is no doubt, Disney wants to become Disney the Streaming Media Giant (Part 2). Netflix, HBO, and Amazon Video should take notice.

The $52.4 Billion Disney-Fox Deal

What Did Disney Purchase?

The Disney-Fox deal dramatically expands Disney’s media footprint.

• 20th Century Fox
• Fox 2000
• Fox Searchlight movie and television studios
• Hulu (60%)
• X-Men, Avatar and Deadpool
• The Simpsons, This Is Us and Modern Family
• Star India & Sky TV (39%) – And another 350 channels in 170 countries
• FX
• National Geographic
• Fox regional sports networks

Why Did Fox Agree to the Purchase?

Mostly, it seems Fox wanted to improve their financial position. As part of the deal, Fox received the following:

• 25% of Disney shares
• $8.5 billion cash dividend from the new company partnership

Also as part of the deal, Disney also agreed to take $13.7 Billion of Fox’s debt.

What Does Fox Keep?

The following media properties are not part of the Disney and Fox deal.

• Fox News
• Fox Business News
• FS1 & FS2 sports networks
• Big Ten Network
• Fox Broadcasting

Disney is a Media Giant

Disney improves their status as a media giant. Before the 21st Century Fox deal, Disney already owned or had a partnership with these media companies:

• A&E Networks, including History network
• ABC Entertainment Group
• ESPN Inc.
• Hulu (partial partnership)
• Marvel Studios; Comics; Characters (multiple divisions and partnerships)

Disney the Streaming Media Giant (Part 2)

Disney is a media giant. But Disney is becoming a streaming media giant. (Think Netflix, HBO, and Amazon Video.) Yes, Disney wants to be like Netflix, HBO, and Amazon Video. So, Disney has also invested in streaming media technology.

Earlier in 2017, Disney invested $2.58 Billion in BAMtech. The BAMtech investment allows Disney to leverage BAMtech’s streaming media technologies.

Using BAMtech’s technology, Disney announced plans to launch new stand-alone streaming services by 2019. And just like Netflix, HBO, and Amazon Video, Disney plans to create exclusive original movies and TV series.

The recent investments by Disney is staggering. There is no doubt Disney is positioning themselves to become Disney the Streaming Media Giant (Part 2). Netflix, HBO, and Amazon Video should take notice.

Read Part 1… Disney the Streaming Media Giant