21st Century Fox

This page was last edited on 17 December 2017, at 13:36.

21st Century Fox is an American multinational mass media corporation based in Midtown Manhattan, New York City. It was one of two companies formed from the 2013 spin-off of the publishing assets of News Corporation, as founded by Rupert Murdoch in 1979.

21st Century Fox is the legal successor to News Corporation dealing primarily in the film and television industries. It is currently the United States third-largest media conglomerate after The Walt Disney Company and Comcast. The other company, the "new" News Corporation, holds Murdoch's print interests and other media assets in Australia (both owned by him and his family via a family trust with 39% controlling interest in each).

The company's assets include the Fox Entertainment Group—owners of the 20th Century Fox film studio (the company's partial namesake), Fox television network and Fox News Channel, among other assets. It also has significant foreign operations, including the pan-Asian pay channel operator Star TV, as well as an approximately 39% stake in Sky plc—a European operator of satellite television providers and pay channels in the United Kingdom and Ireland, Austria, Germany, and Italy.

On December 14, 2017, The Walt Disney Company announced plans to acquire 21st Century Fox for $52.4 billion; this will include key assets such as 20th Century Fox, FX Networks, National Geographic Partners, its regional sports networks, and its international networks. Assets such as the Fox television network, Fox News Channel, and most of Fox Sports will be spun off into an independent company run by the Murdoch family.

Coordinates: 40°45′31″N 73°58′56″W / 40.7585°N 73.9823°W

Twenty-First Century Fox, Inc.
21st Century Fox
Public
Traded as
ISIN US90130A1016
US90130A2006
Industry Mass media
Predecessor News Corporation
Founded June 28, 2013
Founder Rupert Murdoch
Headquarters 1211 Avenue of the Americas, New York City, New York, U.S.
Area served
Worldwide
Key people
Products Broadcasting, Movie production, TV production, Cable television, Record label, Internet
Revenue Decrease US$27.32 billion (2016)[1]
Decrease US$4.15 billion (2016)[1]
Decrease US$2.75 billion (2016)[1]
Total assets Decrease US$48.19 billion (2016)[1]
Total equity Decrease US$13.66 billion (2016)[1]
Number of employees
21,500 (2016)[2]
Divisions
Subsidiaries
Website 21CF.com

History

Formation

21st Century Fox was formed by the splitting of entertainment and media properties from News Corporation. In February 2012, Natalie Ravitz accepted a position to become Rupert Murdoch’s Chief of Staff at News Corporation.[4] News Corporation's board approved the split on May 24, 2013, while shareholders approved the split on June 11, 2013;[5] the company completed the split on June 28 and formally started trading on the NASDAQ on July 1.[6][7][8] Plans for the split were originally announced on June 28 2012, while additional details and the working name of the new company were unveiled on December 3 2012.[9][10][11]

Murdoch stated that performing this split would "unlock the true value of both companies and their distinct assets, enabling investors to benefit from the separate strategic opportunities resulting from more focused management of each division." The move also came in the wake of a series of scandals that had damaged the reputation of the company's publishing operations in the United Kingdom.[7][9] The split was structured so that the old News Corporation would change its name to 21st Century Fox and spin off its publishing assets into a "new" News Corporation.[8][12][13]

While the company was originally announced as the Fox Group, on April 16, 2013, Murdoch announced the new name as a way to suggest the retaining of 20th Century Fox's heritage as the group advances into the future. Its logo was officially unveiled on May 9, 2013, featuring a modernized version of the iconic Fox searchlights.[14][15] However, the 21st Century Fox brand does not extend to the existing 20th Century Fox division (which remains under its original name).[16]

The formation of 21st Century Fox was officially finalized on June 28, 2013. It formally began trading on the NASDAQ and Australian Securities Exchange on July 1, 2013.[17][18]

Subsequent history

On January 8, 2014, Rupert Murdoch announced plans to delist 21st Century Fox's shares from the Australian Securities Exchange, in favor of solely trading on the NASDAQ. Its listing in Australia was a holdover from its period as News Corporation, and 21st Century Fox has relatively little presence in Australia, unlike News Corp. Murdoch stated that the changes, which were expected to be complete by June 2014, would "simplify the capital and operating structure" of 21st Century Fox and provide "improved liquidity" to shareholders.[18][19] Also that month, the company acquired a majority ownership in YES Network.[20]

In June 2014, 21st Century Fox made a bid to acquire Time Warner, which had similarly spun off its publishing assets, for $80 billion in a cash and stock deal. The deal, which was rejected by Time Warner's board of directors in July 2014, would have also involved the sale of CNN to ease antitrust issues.[21] On August 5, 2014, 21st Century Fox announced it had withdrawn its bid for Time Warner.[22] The company's stock had fallen sharply since the bid was announced, prompting directors to announce 21st Century Fox would buy back $6 billion of its shares over the following 12 months.[23]

On July 25, 2014, 21st Century Fox announced the sale of Sky Italia and Sky Deutschland to BSkyB for $9 billion, subject to regulatory and shareholder approval.[24] Fox would use the money from the sale, along with $25 billion it received from Goldman Sachs, to attempt another bid for Time Warner.[25]

In December 2014, Fox-owned television studio Shine Group merged with the Dutch studio Endemol and Core Media Group to form Endemol Shine Group, which is jointly owned by 21st Century Fox and Apollo Global Management.[26]

On September 9, 2015, 21st Century Fox announced a for-profit joint venture with the National Geographic Society, National Geographic Partners, which took ownership of all of National Geographic media and consumer businesses, including National Geographic magazine, and the National Geographic-branded television channels that were already run as a joint venture with Fox. 21st Century Fox holds a 73% stake in the company.[27][28]

On December 15, 2016, 21st Century Fox reached an agreement to take over the 61% of Sky that it did not already own.[29] The company was valued at £18.5 billion. The deal was approved by the European Commission on April 7, 2017,[30] followed by Ireland's Minister for Communications, Climate Action and Environment on June 27.[31] However, the deal has become subject to scrutiny and an extended regulatory review in the United Kingdom over concerns surrounding the plurality of British media that will be owned by the Murdoch family post-merger (counting News Corp's newspapers and recent acquisition of radio station operator Wireless Group), and violations of British news broadcasting regulations connected to Sky's former carriage of Fox News Channel in the country.[32][33][34][35]

On April 30, 2017, it was reported that 21st Century Fox was in talks to purchase Tribune Media in a joint venture with the Blackstone Group.[36][37] On May 7, 2017, it was reported that Sinclair Broadcast Group was nearing a deal to purchase Tribune Media,[38][39] and that 21st Century Fox had dropped its bid for the company.[40][41] The deal was officially announced the next day.[42] On August 2, 2017, it was reported that 21st Century Fox was in talks to form a similar joint venture with Ion Media in an effort to counter Sinclair and displace Fox affiliations from their stations; analysts felt that the proposed partnership was meant as a bargaining ploy against Sinclair, as it would have to make significant investments into the acquired stations to make them profitable and capable of producing local news programming (Ion stations have historically had few employees or local infrastructure), and that Fox risked losing viewers through these transitions.[43][44][45]

The Kingdom Holding Company, owned by Prince Al-Waleed bin Talal, sold its minority stake in 21st Century Fox during the fiscal quarter ending September 2017. It previously held a 6% stake, which had been reduced to around 5% in 2015. The valuation of the shares, or who they were sold to, is unknown; Al-Waleed was the company's largest single shareholder behind the Murdoch family. The sale was reported after Al-Waleed was arrested in early-November 2017 as part of an anti-corruption probe by the Saudi government.[46]

Sale to Disney

On December 14, 2017, after rumors of such a sale, The Walt Disney Company announced their intent to acquire 21st Century Fox for $52.4 billion after the spin-off of certain businesses, pending regulatory approval.[47][48]

Under the terms of the deal, 21st Century Fox will spin-out the Fox Broadcasting Company, Fox News and Fox Business Network, the national operations of Fox Sports (such as FS1 and Big Ten Network, but excluding its regional sports networks), and the 20th Century Fox lot in Century City, and Disney will acquire the remainder of 21st Century Fox.[47] This will include key entertainment assets such as the 20th Century Fox film studio and its subsidiaries, a stake in Hulu, the U.S. pay television subsidiaries FX Networks, Fox Sports Networks, and National Geographic Partners, and international operations such as Star TV and Sky plc. The acquisition is primarily intended to bolster two over-the-top content endeavors being planned by Disney—including an ESPN-branded sports service and a Disney-oriented entertainment service.[49][50]

The proposed transaction has led to significant antitrust concerns, as it will lead to a tangible loss in competition in the film and sports broadcasting industries.[51][52]

Operations

21st Century Fox's operations can be broadly categorized into four major reporting segments:

  • Cable Network Programming
  • Television
  • Filmed Entertainment
  • Direct-Broadcast Satellite Television.[53]

Among the divisions of the company is Twentieth Century Fox Consumer Products which "licenses and markets properties worldwide" on behalf of a number of 21st Century Fox assets and third-parties.[54]

As of 2015, the senior vice president for government relations was Joe Welch.[55]

Corporate governance

On its formation in 2013, Murdoch was chairman and chief executive officer (CEO) of the company, while Chase Carey took the posts of president and chief operating officer.[56] Co-chairman and Co-CEO positions were created in 2014 and filled by Lachlan Murdoch and James Murdoch, respectively, both sons of Rupert Murdoch.[57]

On July 1, 2015, Lachlan Murdoch was elevated to Co-Executive Chairman alongside his father and James Murdoch replaced his father as CEO. Former COO Chase Carey became Executive Vice Chairman.[58]

Assets

21st Century Fox primarily consists of the media and broadcasting properties that were owned by its predecessor, such as the Fox Entertainment Group, STAR TV, and their 39.14% stake in Sky plc. News Corporation's broadcasting properties in Australia, such as Foxtel and Fox Sports Australia, remain a part of the newly renamed News Corp Australia—which was spun off with the new News Corp and is not a part of 21st Century Fox.[12]

References

  1. ^ a b c d e "2016 annual results". Twenty-First Century Fox Inc.
  2. ^ "FOXA Profile - Twenty-First Century Fox, Inc. Stock - Yahoo Finance".
  3. ^ "Businesses - 21st Century Fox".
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  5. ^ Wall, Matthew (June 11, 2013). "News Corp shareholders vote to split company into two". BBC News Online.
  6. ^ Rushe, Dominic (June 18, 2013). "Rupert Murdoch splits empire but keeps faith in tomorrow's newspapers". The Guardian.
  7. ^ a b James, Meg (May 24, 2013). "News Corp. board approves company split, set for June 28". Los Angeles Times.
  8. ^ a b James, Meg (April 30, 2013). "News Corp. plans June 11 shareholder vote on company split". Los Angeles Times.
  9. ^ a b Staff (June 28, 2012). "News Corp confirms plan to split the media giant". BBC News Online.
  10. ^ Turner, Nick; Lee, Edmund (December 3, 2012). "News Corp. Will Use Fox Name as Breakup Proceeds". Bloomberg News.
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  16. ^ Finke, Nikki (April 16, 2013). "No Name Change for 20th Century Fox". Deadline.com.
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