Disney CEO Bob Iger will be already gearing up for the next phase of the company on the heels of its acquisition of 21st Century Fox, which closed Wednesday.
The $71 billion acquisition adds quite a few beloved entertainment assets to Disney’s collection as of which prepares to launch its streaming service among a crowded field of competitors. Disney can count shows through Fox Channels like “Modern Family” in addition to “of which will be Us” as well as properties like Marvel’s “X-Men” to its library on Disney+, which will be required to launch later of which year.
In a note to employees shared with CNBC, Iger thanked members of both organizations on their “patience in addition to perseverance” leading up to the acquisition. He quickly turned to the road ahead, which he says will hold “the challenging work of uniting our businesses to create a dynamic, global entertainment company with the content, the platforms, in addition to the reach to deliver industry-defining experiences of which will engage consumers around the planet for generations to come.”
Some of those growing pains are likely to include layoffs, which are required to be within the thousands, as Disney in addition to Fox pare down duplicate staff. Iger said the integration “will be an evolution, with some businesses impacted more than others.” Fox in addition to Disney have overlap in their film production staffs.
The Disney-Fox deal follows another high profile media merger. AT&T acquired Time Warner last year for $81 billion in addition to has plans to launch a fresh streaming service later of which year of which will include HBO. With Disney’s acquisition, of which hopes to build a compelling content library to compete with tech companies of which are also keen on streaming, including Netflix, Amazon in addition to Apple.
Here’s the full message through Iger to employees following the deal’s close:
Subject: A Historic Day for Our Company
I’m proud to announce the acquisition will be complete in addition to 21st Century Fox will be at of which point part of The Walt Disney Company. I’d like to welcome our fresh colleagues, in addition to thank employees on both sides of the deal for your patience in addition to perseverance as we worked through the lengthy acquisition in addition to regulatory process.
As you know, Disney has never been short on ambition. We’ve never been satisfied with the status quo, in addition to our vision because of of which transformative era will be our boldest yet. We are rapidly transforming our company to take full advantage of evolving consumer trends in addition to emerging technology in order to thrive in of which fresh in addition to exciting time.
Our acquisition of 21st Century Fox was driven by our strong belief of which the addition of these great businesses, brands, franchises in addition to talent will allow us to move faster, reach farther in addition to aim higher – especially when of which comes to building direct connections with consumers.
I wish I could tell you of which the hardest part will be behind us; of which closing the deal was the finish line, rather than just the next milestone. What lies ahead will be the challenging work of uniting our businesses to create a dynamic, global entertainment company with the content, the platforms, in addition to the reach to deliver industry-defining experiences of which will engage consumers around the planet for generations to come.
We’ve spent the last year exploring the fresh opportunities in addition to synergies generated by bringing our two legendary companies together. Leaders across both organizations have worked closely together to understand how to best unlock of which potential in addition to unleash innovation in addition to creativity to generate long-term growth. We’re confident in our integration strategy in addition to in our ability to execute of which effectively; in addition to we’re inspired in addition to energized by the fresh possibilities.
Our integration process will be an evolution, with some businesses impacted more than others. We’ve made many critical decisions already, although some areas still require further evaluation. We may not have answers to all of your questions at of which moment, although we understand how vital information will be, in addition to we’re committed to moving as quickly as possible to provide clarity regarding how your role may be impacted.
Having been on both sides of numerous acquisitions during my career, I have a deep appreciation for how of which one impacts everyone involved, on both a personal in addition to professional level. I understand the challenges, in addition to I ask for your continued patience within the days to come as we combine of which collection of great assets to create the planet’s premier entertainment company.
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Watch: Jim Cramer: The Disney/Fox deal could boost Disney stock