Disney recently announced that it is purchasing a large stake in 21st Century Fox. Through this expansive deal, Disney will acquire a whole host of media and entertainment properties, which include television and film studios and cable providers. Like many other mergers and acquisitions, Disney’s Fox transaction will have to receive regulatory approval from the U.S government. Regulators are particularly keen to scrutinize business sales and purchases that leave industries dominated by handfuls of massive entities.
Supposing this merger plan is approved by regulators, the execution of the deal will remain a complex endeavor. Large acquisitions of this type typically require the drafting of multiple contracts. Fox and Disney will need to make sure that these contracts are consistent with previously signed contracts and shareholder agreements. Entertainment industry analysts believe that Disney’s acquisition plan is likely to receive approval from federal regulators. If so, Disney will achieve an even more commanding position within the entertainment world.
With this proposed acquisition, Disney will receive valuable franchises like “The Simpsons” and the “X-Men” film series. The deal will also give Disney a controlling stake in the streaming video service Hulu. This part of the deal may prove essential for Disney’s plan to challenge Netflix, the current leader in streaming video. Reportedly, Fox’s news and sports divisions are not included in the deal.
Business experts have noted that the merger is a complex yet rewarding type of business formation. When a business owner decides to pursue a merger or an acquisition, a qualified business attorney can provide crucial guidance. With this assistance, a business owner may have a better chance of avoiding merger-related business litigation down the road. In the event that the other party in the merger engages in a breach of contract, the business owner can again rely on his or her attorney to pursue justice in an efficient manner.