Jump to content

21st Century Fox

From Alfawiki
Twenty-First Century Fox, Inc.
Company typePublic
IndustryMedia and entertainment
PredecessorNews Corporation
FoundedJune 28, 2013; 13 years ago (2013-06-28) in New York City, U.S.
DefunctMarch 20, 2019 (2019-03-20)
FateAcquired by The Walt Disney Company; remaining assets spun off into Fox Corporation
Headquarters
Midtown Manhattan, New York City
,
United States
Area served
Worldwide
Key people
Rupert Murdoch (Co-executive Chairman), Lachlan Murdoch (Co-executive Chairman), James Murdoch (CEO)
ProductsFilm and television production and distribution, broadcasting

Twenty-First Century Fox, Inc., commonly referred to as 21st Century Fox, was a global media and entertainment corporation headquartered in Midtown Manhattan, New York City. Established on June 28, 2013, as the successor entity to News Corporation, it concentrated mainly on the film and television sectors. Prior to its acquisition by The Walt Disney Company in 2019, it stood as the fourth-largest media conglomerate in the United States by revenue. Leadership included Rupert Murdoch as co-executive chairman alongside his sons Lachlan Murdoch, also co-executive chairman, and James Murdoch serving as CEO.

Among 21st Century Fox’s principal holdings was the Fox Entertainment Group, which encompassed the 20th Century Fox film studio, the Fox television network, and a controlling 73% interest in National Geographic Partners, the commercial media branch of the National Geographic Society. Its international portfolio featured Star India, a prominent operator of Indian television channels. In 2018, the company was ranked 109th on the Fortune 500 list based on revenue.

On December 14, 2017, Disney announced an agreement to purchase 21st Century Fox for $52.4 billion in stock. Following a competing $65 billion all-cash bid from Comcast, Disney increased its offer to $71.3 billion combining cash and stock. Comcast eventually withdrew its bid in July 2018 to focus on acquiring Sky plc, in which 21CF held a 39% stake. Shareholders approved Disney’s acquisition on July 27, 2018.

The transaction included most of the entertainment assets such as 20th Century Fox, FX Networks, and National Geographic Partners. Although regional Fox Sports Networks were included initially, antitrust requirements mandated Disney to divest these within 90 days. The remaining assets—primarily comprising Fox and MyNetworkTV broadcast networks, local television stations, Fox News Channel, and national sports properties—were spun off into a new entity named Fox Corporation, which began trading publicly on March 19, 2019. Disney finalized the acquisition on March 20, 2019.

Formation

The creation of 21st Century Fox resulted from separating the entertainment and media operations from News Corporation. The board gave approval for this split on May 24, 2013, with shareholders consenting on June 11; the division was completed by June 28, and shares of 21st Century Fox started trading on NASDAQ on July 1.

The initial announcement of the separation occurred on June 28, 2012. Additional details and the company’s working name were disclosed in December that year. Rupert Murdoch explained that this restructuring would "unlock the true value of both companies," enabling investors to benefit from distinct management focusing on separate business areas. This reorganization followed reputational damage News Corporation faced due to scandals affecting its UK publishing division. The original News Corporation was renamed as 21st Century Fox while publishing assets were spun off into a new entity retaining the News Corporation name.

Originally referred to as the Fox Group during planning stages, it was renamed 21st Century Fox on April 16, 2013, to capitalize on recognition associated with 20th Century Fox. The company’s logo was unveiled on May 9, 2013; designed by Pentagram, it presented a contemporary take on the classic Fox searchlights motif. It is important to note that the brand name "21st Century Fox" did not extend to the pre-existing 20th Century Fox division.

The official formation date was June 28, 2013. Rupert Murdoch took on roles as chairman and CEO while Chase Carey assumed president and COO positions. In 2014, co-chairman and co-CEO titles were introduced and filled by Murdoch’s sons Lachlan and James respectively. For a brief period, the company was also listed on the Australian Securities Exchange before withdrawing from that market early in 2014.

Subsequent history

On January 8, 2014, Rupert Murdoch revealed intentions to remove 21st Century Fox's shares from the Australian Securities Exchange, focusing trading exclusively on NASDAQ. The Australian listing was a legacy of the News Corporation period, while 21st Century Fox maintained relatively minor operations in Australia compared to News Corp. Murdoch explained that this step would "streamline the capital and operational framework" and enhance liquidity for shareholders. That same month, the company secured majority control of YES Network, a regional sports channel originally established by the New York Yankees.

In June 2014, 21st Century Fox proposed an $80 billion acquisition of Time Warner through a combination of cash and stock; Time Warner had previously separated its publishing division. The board of Time Warner declined the offer in July, announcing plans to divest CNN to alleviate antitrust issues. Subsequently, on August 5, 2014, Fox retracted its bid following a steep decline in its stock price and declared a $6 billion share repurchase program over the forthcoming year.

On July 25, 2014, 21st Century Fox consented to sell Sky Italia and Sky Deutschland to BSkyB for $9 billion, subject to regulatory approval. The funds from this transaction, combined with $25 billion raised from Goldman Sachs, were intended to support another bid for Time Warner.

In December 2014, Fox’s Shine Group combined forces with Apollo Global Management’s Endemol and Core Media Group to create Endemol Shine Group, a joint venture equally owned by Fox and Apollo.

Effective July 1, 2015, Lachlan Murdoch was appointed Co-Executive Chairman alongside Rupert Murdoch; James Murdoch replaced his father as CEO. Meanwhile, former COO Chase Carey assumed the role of Executive Vice-chairman.

On September 9, 2015, Fox entered a profit-driven partnership with the National Geographic Society—forming National Geographic Partners—acquiring control over all National Geographic media and consumer enterprises. Fox holds a 73% ownership stake in this venture.

On December 9, 2016, Fox proposed purchasing the remaining 61% stake in Sky plc it did not already own; this £18.5 billion agreement received approval from the European Commission in April 2017 and Ireland in June. Nonetheless, UK regulators examined the deal closely due to concerns about media plurality linked to Murdoch family ownership of Sky News and other outlets. A competitive bidding process ensued, culminating in Comcast's winning £17.28 per-share offer in September 2018. Following this, Fox planned to divest its entire Sky holding to Comcast for £12 billion. The transaction finalized on October 4, 2018, granting Comcast a controlling interest of 76.8%.

The Kingdom Holding Company—owned by Prince Al-Waleed bin Talal and Fox’s largest shareholder after the Murdochs—disposed of its minority stake during Q3 2017. Previously holding approximately 5-6%, this sale coincided with Al-Waleed’s November 2017 detention amid a Saudi anti-corruption investigation; specifics of the deal were not disclosed.

Sale to Disney

On December 14, 2017, The Walt Disney Company announced its intention to acquire 21st Century Fox for $52.4 billion following the separation of certain divisions and subject to regulatory clearance. Peter Rice, president of 21st Century Fox, anticipated closing the transaction by mid-2019.

As part of the arrangement, "New Fox" was spun off—comprising Fox Broadcasting Company, Fox News Channel, Fox Business Network, and national Fox Sports assets (excluding regional sports networks). Disney acquired major entertainment properties such as the 20th Century Fox film studio, a Hulu stake, FX Networks, National Geographic Partners, Star India, and international Fox Networks Group. The acquisition aimed at bolstering Disney's direct-to-consumer platforms ESPN+ and Disney+. Additionally, Disney secured a seven-year lease on the 20th Century Fox backlot located in Century City.

The deal prompted antitrust scrutiny concerning competition in film production and sports broadcasting but was expected to obtain regulatory approval under close examination. In early 2018, Comcast contemplated making a competing offer initially valued at $60 billion but was declined by Fox due to antitrust considerations. By May that year, Comcast prepared an unsolicited all-cash proposal contingent upon AT&T's acquisition outcome of Time Warner and confirmed advanced preparations by late May.

A shareholder vote was scheduled for July 10, 2018. Amid Comcast’s bid efforts, Disney readied an all-cash counteroffer. On June 13, Comcast officially presented a $65 billion offer; Disney responded with an increased bid of $71.3 billion on June 20—which was accepted by Fox.

The U.S. Department of Justice cleared the acquisition on June 27 with conditions requiring divestiture of Fox's regional sports networks either to third parties or "New Fox." Comcast withdrew its bid on July 19 to concentrate on acquiring Sky. By late July, shareholders overwhelmingly endorsed the deal; final regulatory consents from China and the European Union remained pending.

By October 2018, organizational restructuring plans for "New Fox" were underway targeting January 2019 ahead of an anticipated closing in March. The European Commission approved the acquisition in November after divestitures related to overlapping A&E Networks assets were completed. Chinese regulators granted unconditional approval later that month.

In January 2019, filings were submitted for establishing Fox Corporation; it was confirmed that bids for former regional sports networks would not be pursued. During February and March 2019, Disney agreed to sell Fox Sports operations in Brazil and Latin America to satisfy antitrust requirements within those jurisdictions.

Disney announced March 20, 2019 as the completion date for the sale. Preliminary trading of the newly formed Fox Corporation commenced on March 19 prior to formal merger closure. Under terms of the acquisition agreement, Disney planned gradual retirement of the Fox brand by 2024.

Lachlan Murdoch, James Murdoch, Elisabeth Murdoch, and Prudence MacLeod each received approximately $2 billion from proceeds related to this transaction.

Final assets

The core of 21st Century Fox consisted primarily of media and broadcasting holdings inherited from its predecessor, such as Fox Entertainment Group and Star India. Australian broadcast entities including Foxtel and Fox Sports Australia remained part of the separated News Corp Australia, distinct from 21st Century Fox.

Music and radio

Studios

Production

Broadcast

The following units were transferred to the newly formed Fox Corporation, separate from Disney.

Satellite Television

  • Tata Sky holds a 30% stake as an Indian Direct to Home TV provider, in collaboration with the Tata Group, which retains 70% ownership.
  • Fox Networks Group Asia Pacific, previously known as Star TV, is a satellite television service reaching 300 million viewers across 53 countries, primarily serving Taiwan, China, and other parts of Asia.
  • Star India operates as a satellite TV network with broadcasting rights specific to India.

Cable

The following cable TV channels are fully or partially owned by 21st Century Fox:

Internet

Additional holdings

  • FoxNext – engaged in video game production, virtual reality initiatives, and theme park enterprises

External links

Retrieved from "https://www.alfawiki.org/index.php?title=21st_Century_Fox&oldid=65464"