Disney to Purchase Fox Family Worldwide

Posted on July 25, 2001

The Walt Disney Co. will purchase 100 percent of Fox Family Worldwide from News Corp. and Haim Saban, it was announced by Michael D. Eisner, chairman and CEO, and Robert A. Iger, president and COO. Among the businesses being purchased by Disney are: The Fox Family Channel; A 76% ownership interest in Fox Kids Europe; Fox Kids channels in Latin America; and The Saban Library and Entertainment Productions business. The transaction consists of $3 billion in cash, plus the assumption of $2.3 billion in debt. It is projected to close in three to four months, subject to antitrust approvals both in and outside the U.S.

``This acquisition strengthens our company's worldwide business of family entertainment,'' Eisner said. ``The Family Channel and Fox Kids are unique assets that are particularly well suited to be a part of The Walt Disney Company. The Fox Family Channel is one of the few fully distributed stand-alone channels and gives us a platform for launching ABC Family and strengthening our position as the leading provider of family television programming.''

ABC Family will be managed collaboratively between the ABC Television Network and the ABC Cable Networks Group. The international channels will report to the ABC Cable Networks Group, which also has responsibility for the international Disney Channels, including Toon Disney and Playhouse Disney. ABC Family will continue to broadcast the 700 Club and other programs produced by the Christian Broadcast Network, headed by Pat Robertson.

When fully integrated into Disney, ABC Family will be an outlet for an array of new family content from other Disney sources. For example, the company intends to explore opportunities such as family television features or series based on the content of Disney-owned magazines such as Family Fun and Discover, and the Family.com website, which will be further complemented by the Fox Family-related websites that are part of this transaction.