Analysis of the Walt Disney's acquisition of 21st Century Fox

Abstract

The film and television entertainment industry is a rapidly evolving industry, which must launch products in a short amount of time to cater to the audience. Otherwise, audience loss and a decline in profitability may result. Therefore, acquisition is a crucial business decision for film and entertainment companies, as it expedites the establishment of a production chain. This paper focuses on a series of implications for both companies and the film and entertainment industry as a result of Walt Disney's acquisition of 21st Century Fox. The impact of Disney's acquisition of Fox to launch the streaming service Disney+ on Disney's business position is analyzed in terms of financial data, box office revenues, and other aspects. According to the analysis, Disney has benefited from the acquisition. This acquisition has placed Disney at the top of the U.S. box office and given it the ability to compete with streaming companies like Netflix in the streaming service industry. However, there are also limitations and deficiencies, e.g., it may make the market less diverse. Therefore, in addition to a discussion of the limitations and flaws, this study offers substantial recommendations to allow Disney to simultaneously protect its intellectual property and expand its audience to increase viewership and prevent box office losses.