Disney (NYSE:DIS) stock was falling on Friday as the company’s shareholders have approved the acquisition of Fox (NASDAQ:FOXA) assets as the company hopes to expand its position in the media industry.
Shareholders from Fox have also given the green light to the deal, which is expected to be worth about $71.3 billion. Investors from both companies announced the news today during separate meetings at the New York Hilton this morning to vote on the move.
Fox general counsel told Variety that the move would be a “transformative transaction that will enable us to unlock significant value for our stockholders.” It also marks another major move to combine two of the biggest media companies out there, offering the opportunity for more collaborations across characters from film franchises from both sides.
The Disney-Fox deal has been in the makings for more than six months as Disney offered $52.4 billion for the media company’s assets back in December, which include the 20th Century Fox movie studio and the FX network. Comcast (NASDAQ:CMCSA) helped to increase the price with a $65 billion offer back in June but eventually backed out.
Both companies said that the buyout is slated to be completed sometime in early 2019 if it does manage to garner all of the standard regulatory approval.
DIS stock was down about 1.1% on Friday following the news of the buyout, while FOXA shares slid roughly 0.4%.