The Walt Disney Co.

The Walt Disney Co. has set a $52.4 billion, all-stock deal to acquire 20th Century Fox and other entertainment and sports assets from Rupert Murdoch’s empire. The deal between Disney and 21st Century Fox marks a union of Hollywood heavyweights and a bid by Disney to bolster its core TV and film businesses against an onslaught of new competitors. The deal estimates that 21st Century Fox assets are valued at $66.1 billion, including $13.7 billion debt. The enterprise value of the deal is $69 billion. 21st Century Fox will spinoff Fox Broadcasting Co., Fox Sports, Fox News, Fox Television Stations and a handful of other assets into a new company that will have revenue of $10 billion and earnings of about $2.8 billion. Disney expects to realize $2 billion in cost savings from combining Disney and Fox’s overlapping businesses within two years of the deal’s closing. Disney expects the regulatory review of the acquisition to take as long as 18 months.

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