The Walt Disney Co. has agreed to acquire big parts of 21st Century Fox in an all-stock deal worth $52.4 billion, or approximately $66.1 billion when including debt, valuing shares of Fox at around $40 apiece while they had traded Wednesday at $32.75.
In another key news update, Disney said that longtime boss Bob Iger has extended his contract as chairman and CEO through the end of 2021.
Management said the full financial benefits of the deal would become visible by 2021.
The deal will make Rupert Murdoch, executive co-chairman of Fox, and sons James (CEO) and Lachlan (co-executive chairman) key shareholders of Disney stock.
"Furthermore, I'm convinced that this combination, under Bob Iger's leadership, will be one of the greatest companies in the world.
Under the terms of the agreement, shareholders of Fox will receive 0.2745 Disney shares for each Fox share they hold, subject to adjustment for certain tax liabilities.
Disney will also assume approximately $13.7 billion of net debt of Fox. »