How a media giant split itself apart to survive and eventually sell to Disney
Born from a corporate divorce in 2013, 21st Century Fox was designed to unlock value by separating entertainment from publishing. Yet, within six years, the conglomerate became the centerpiece of a massive bidding war, ultimately transforming into a smaller entity as its most iconic assets were absorbed by Disney.
In June 2013, Rupert Murdoch split his media empire into two distinct entities. The original News Corporation was renamed 21st Century Fox, housing the film and television business, while a new News Corp took over the family's print and Australian media interests. Murdoch argued this separation would allow for more focused management, though the move also followed scandals that had tarnished the reputation of his British publishing operations.
The company quickly grew into a global powerhouse, holding major assets like the 20th Century Fox film studio and a majority stake in National Geographic Partners. By 2017, however, the landscape shifted. Disney initiated a $52.4 billion bid to acquire the company’s entertainment portfolio. This sparked a high-stakes battle when Comcast entered with a $65 billion counter-offer, forcing Disney to raise its final price to $71.3 billion in cash and stock.
The deal, which closed on March 20, 2019, fundamentally reshaped the media industry. Disney gained control of legendary studios and networks, while the remaining assets—primarily Fox News, Fox Business, and national sports operations—were spun out into a new, independent Fox Corporation. For the Murdoch family, the transaction was immensely lucrative; Rupert’s children, Lachlan, James, Elisabeth, and Prudence, each saw their personal wealth increase by approximately $2 billion.
Regulatory hurdles defined the final stages of the acquisition. To satisfy antitrust concerns, Disney was forced to divest various regional sports networks and international operations in regions like Brazil and Latin America. By the time the dust settled, the 21st Century Fox name was effectively retired, marking the end of a brief but consequential chapter in corporate history.
Source: 21st Century Fox
