Acquisition Analysis: Evidence from Disney's Acquisition of Fox

Abstract

Contemporarily, the U.S. film and television industry continues to grow, and competition among companies is stimulating. In order to increase its competitiveness and reasonably integrate the industry, the Walt Disney Company has adopted M&A measures. In March 2019, the Walt Disney Company's acquisition of 21st Century Fox was officially announced to be effective. However, M&A is a double-edged sword, and M&A brings benefits as well as risks. This study will further focus on the case of Disney's acquisition of Fox, analyze the acquisition motives, explore the source of acquisition funds, dissect the characteristics of the acquisition, determine the success or failure of the acquisition through a financial comparison before and after the acquisition. In addition, this paper will analyze the impact of the pandemic, providing reference for the development of the film and television industry. According to the analysis, Disney has been affected both positively and negatively by the pandemic and by mergers and acquisitions. Overall, these results shed light on guiding further exploration of the study meets unpredictable events in mergers and acquisitions.