Disney valuation not moved by Fox deal

The mouse's move to buy Fox's entertainment assets is strategically sound, but the benefits will be offset by the price paid.

Neil Macker, CFA 19 December, 2017 | 6:00PM

 

 

Neil Macker: Disney announced on Thursday that it would acquire the entertainment assets of Fox for US$52 billion in stock and the assumption of US$14 billion in net debt. We expect the deal to receive regulatory approval, but do expect the deal to take at least up to 18 months to close. We are maintaining our wide-moat ratings for both Fox and Disney.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
The Walt Disney Co128.63 USD-1.22

About Author

Neil Macker, CFA

Neil Macker, CFA  Neil Macker, CFA, is a senior equity analyst for Morningstar.

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