Disney will acquire 21st Century Fox after parts of the company split off, Good Morning America reported Thursday.
The Walt Disney Company will acquire 21st Century Fox's film and television studios, cable entertainment networks and international TV businesses. The parts that will split off and not be a part of the Walt Disney company include Fox Broadcasting network and stations, Fox News and Fox Business.
"The acquisition of this stellar collection of businesses from 21st Century Fox reflects the increasing consumer demand for a rich diversity of entertainment experiences that are more compelling, accessible and convenient than ever before," Bob Iger, chairman and CEO of The Walt Disney Co., said in a statement announcing the acquisition.
The deal was made for $52.4 billion in stock, Disney announced.
"We are extremely proud of all that we have built at 21st Century Fox, and I firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace in what is an exciting and dynamic industry," said Rupert Murdoch, executive chairman of 21st Century Fox, in a statement.
Iger said today on "Good Morning America" the deal allows Disney to use "cutting-edge technology to reach consumers in far more compelling ways." He noted the deal grew from conversations with Murdoch that began over the summer.
"He and I were musing at some point this summer about the industry and the need to reach consumers in the ways that I described and the disruptive forces that we've both witnessed during our time in this business," he said. "After some musing it seemed to me there might be an opportunity to put our companies together and to create something that's even better than the two that were separate companies."
He added, "I think he viewed this as not only good for the assets that he had built but good for the shareholders of his company."
The acquisition will be subject to federal approval.
The Walt Disney Company is the parent company of this station.
Disney to acquire 21st Century Fox for $52.4 Billion, Fox News and other parts to spin off