Assessing Disney’s $71.3 Billion Gamble: Was the 21st Century Fox Acquisition Worth It?

When Disney completed its $71.3 billion acquisition of 21st Century Fox in 2019, it marked a colossal shift in the media landscape. At the time, the deal promised significant benefits, with Disney gaining control over a vast array of assets including the X-Men characters, the ‘Avatar’ franchise and numerous popular films and TV shows. Fast forward to 2024, and it’s time to reflect on whether the acquisition has lived up to expectations, particularly in light of the COVID-19 pandemic’s impact on the industry.

The integration of Fox’s properties into Disney’s portfolio was anticipated to be a game-changer. Marvel Studios, now with access to X-Men characters, could potentially revitalise the Marvel Cinematic Universe (MCU) with new heroes and villains. Yet, while this aspect of the deal was highly anticipated, the actual inclusion of these characters in MCU projects has been gradual.

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The recent release of ‘Deadpool & Wolverine’ signals progress, but the broader impact of the X-Men on the MCU remains a work in progress.

On the other hand, Disney’s acquisition of Fox has yielded impressive returns through its most notable property, the ‘Avatar’ franchise. ‘Avatar: The Way of Water,’ the sequel to the highest-grossing film of all time, grossed over $2.32 billion, cementing its place as one of the top-grossing films ever. The success of the ‘Avatar’ franchise, with more sequels on the horizon, has undoubtedly been a bright spot for Disney.

However, not all aspects of the acquisition have been smooth sailing. The addition of Fox’s extensive content library to Disney+ has been a double-edged sword. While it diversified the streaming service’s offerings, it hasn’t substantially boosted Disney+’s popularity, which continues to face challenges in the competitive streaming market.

Reports suggest that Disney is even considering selling some of the acquired cable channels, such as FX and National Geographic, reflecting ongoing difficulties in integrating these assets.