For media tycoon Rupert Murdoch, the future of the industry is news and sports, that’s why he is selling Disney (NYSE:DIS) the entertainment assets of 21st Century Fox (NASDAQ:FOXA) for $52.4 billion.
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“There’s only must-see Fox News and must see FOX Business,” said Murdoch, Executive Chairman of 21st Century Fox during an interview on FOX Business’ “Mornings with Maria.” “The new Fox will have Fox News, FOX Business, Fox Broadcasting, Fox Sports, but the point is it will have a cash flow of at least $2 billion a year,” he explained, adding he can use that money to build another business. “We can see expanding that and taking other opportunities and building another great company.”
|FOXA||21ST CENTURY FOX||37.14||-0.01||-0.03%|
|DIS||WALT DISNEY COMPANY||102.87||-0.37||-0.36%|
Murdoch’s other company, News Corp. (NASDAQ:NWSA), owns marquee properties such as The Wall Street Journal and Barron’s. When asked whether he would consider combining the new Fox with those assets, he said, “Ideally yes, but that’s years away”.
As for Disney, CEO Bob Iger will stay on through 2021 overseeing the new assets from the deal; 21st Century Fox, Twentieth Century Fox Film and Television studios, along with cable and international TV businesses. Prior to the close of the transaction, it is anticipated that 21st Century Fox will seek to complete its planned acquisition of the 61% of Sky it doesn’t already own. If it doesn’t, Murdoch said he expects Disney to make its own pursuit.
21st Century Fox is the parent of Fox News and FOX Business.