Disney-21st Century Fox Merger and Acquisition

Disney-21st Century Fox Merger and Acquisition

Disney’s acquisition of 21st Century Fox happened on March 20, 2019. The purchase included 20th Century Fox film and television studios, a 73% stake in National Geographic Partners, a 30% stake in Hulu, and many more. Disney was negotiating a deal to acquire Fox’s filmed entertainment, direct broadcast satellite divisions, and cable entertainment. It did not include Fox’s studio lot, news groups, television stations, and sports. Disney wanted this merger and acquisition to happen to grow its entertainment series. Hire our assignment writing services in case your assignment is devastating you. We offer assignment help with high professionalism.

The deal also included film rights to some franchises of Fox, like X-Men, Star Wars, and many more. On December 14, both parties confirmed the merger of $52.4 billion with pending approval from the Department of Justice Antitrust Division of the United States.

Issues with negotiations and mergers 

Comcast deal– Several Fox investors said they would terminate the agreement with Disney if Comcast followed through on its plan of launching an all-cash bid of $60 million.

Vote– It was easier for other shareholders to defeat Murdoch because, according to the company’s by-laws, the special rights of the Murdoch family did not apply to a vote on the Disney-Fox deal, as only 17% of the vote was controlled by the trust.

Comcast offer– Comcast followed through on its request, and Disney had to respond with an all-cash offer.

Lawsuit– A shareholder of Fox filed a lawsuit to stop the acquisition from Disney. The shareholder cited the absence of financial projections for Hulu for the case.

These were some issues and problems faced during the negotiations and the acquisition.

Some of the decision-analysis tools that are used in negotiations

Cross-Impact analysis helps determine the risks and their impacts and then make decisions accordingly. It examines a range of national interests, the implications of the negotiations, and many more.

Decision-Tree Analysis– It helps to evaluate the likely external responses to concessions and make decisions according to the analysis.

Multi-Attribute Utility Analysis– This tool can examine the costs and benefits, confidence, and many such aspects of negotiations by evaluating trade-off costs, benefits, generating trust, and many more.

All these tools help the negotiation process in one way or another, which is why all of these were used in the Disney-Fox acquisition at one point or another.

BATNA stands for ‘Best Alternative To A Negotiated Agreement’ and refers to the most beneficial alternative that can be taken if the negotiations fail and any agreement cannot be made. In other words, it’s the best alternative when a deal fails. It is used during talks because it gives an option if the negotiations fall through, provides negotiating power, and determines the reservation point. In the case of Disney-Fox, both parties had their BATNA, which they used to negotiate a deal that was effective and beneficial for the parties involved.

Recommendations

Tools and Techniques– Using the proper tools and techniques before and during negotiation is essential to gain the best possible deal.

Strategies– Forming strategies is a part of the process of negotiations because it gives an edge during the process and helps in understanding the situation clearly.

Pre-evaluation– Evaluating the situation before getting into the process of negotiations is one of the most essential recommendations, as it always helps to know the problem before facing it.

Impact– Evaluating the result of the negotiations of the business, operations, personnel, and many more is essential, and it also helps to make the best deals and offers.

Best practices in negotiations can be used to make the process a fair process and beneficial for the parties that are involved. Decision tools, analysis tools, and negotiation techniques must be used properly and reasonably to keep the process healthy and effective.

References

https://en.wikipedia.org/wiki/Acquisition_of_21st_Century_Fox_by_Disney

http://negotiations.org/DecisionAnalysis.pdf

https://corporatefinanceinstitute.com/resources/knowledge/deals/what-is-batna/

https://stratechery.com/2017/disney-and-fox/

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Research and select a company or organization in current negotiations (e.g., union contracts, mergers, buy-outs, product disputes, patent infringement.). Then, summarize the company or organization’s history and current negotiation status. Highlight some of the negotiator-cognition issues they may have encountered during negotiations. Discuss decision-analysis tools that are used in negotiations. Were any of these tools used by your company during talks? Next, explain a BATNA and how it is used during negotiations. Try to determine if one or both sides had a BATNA and, if so, summarize your understanding of it. Finally, provide recommendations for the company to use in future negotiations based on what you have learned in this unit. How could they use best practices in negotiations to improve future talks?

Your case study should be a minimum of two pages in length. You must use at least two academic sources; any information should be cited and referenced in APA format.