Loren Javier
The deal, which will be announced shortly, will complete more than half a century expansion of 86-year-old Murdoch. He turned an Australian newspaper, inherited from his father at the age of 21, into one of the world's largest conglomerates for the production of news and cinema.
According to the terms, all Fox shares to be sold to Disney, including Twentieth Century Fox cinema and television, cable networks and international operations, will be valued at about $ 29 per security, the source said.
Fox's remaining assets focused on news and sports will be offered to existing Fox shareholders in a new company that is likely to be valued at more than $ 11 per share. The new company will remain unnamed before the announcement of the deal.
Fox shares finished trading on Wednesday at $ 32.75, while the market capitalization was about $ 60 billion. For the first time, the exact terms of the deal were called by The Wall Street Journal.
After the transaction, Murdoch intends to focus on the news business, which was his passion throughout his life. Murdoch, born in Australia, inherited his father's newspaper business in 1952 and has been transforming it over the years, acquiring giants such as the Wall Street Journal, the London Times and the 20th Century Fox film studio.
Murdoch's transition to the sale of assets, and not their purchase, was a surprise for many who expected him to transfer the venture to his sons, James and Lachlan. According to sources, none of Murdochs will get seats on the board of directors of Disney.
Disney is struggling to strengthen its television business, since the cancellation of a cable subscription puts pressure on its largest network, the sports channel ESPN.
source: wsj.com
According to the terms, all Fox shares to be sold to Disney, including Twentieth Century Fox cinema and television, cable networks and international operations, will be valued at about $ 29 per security, the source said.
Fox's remaining assets focused on news and sports will be offered to existing Fox shareholders in a new company that is likely to be valued at more than $ 11 per share. The new company will remain unnamed before the announcement of the deal.
Fox shares finished trading on Wednesday at $ 32.75, while the market capitalization was about $ 60 billion. For the first time, the exact terms of the deal were called by The Wall Street Journal.
After the transaction, Murdoch intends to focus on the news business, which was his passion throughout his life. Murdoch, born in Australia, inherited his father's newspaper business in 1952 and has been transforming it over the years, acquiring giants such as the Wall Street Journal, the London Times and the 20th Century Fox film studio.
Murdoch's transition to the sale of assets, and not their purchase, was a surprise for many who expected him to transfer the venture to his sons, James and Lachlan. According to sources, none of Murdochs will get seats on the board of directors of Disney.
Disney is struggling to strengthen its television business, since the cancellation of a cable subscription puts pressure on its largest network, the sports channel ESPN.
source: wsj.com