Fox Corporation

Last updated

Fox Corporation
Type Public
ISIN US35137L1052
US35137L2043
Industry Mass media
Predecessor 21st Century Fox
FoundedJanuary 1, 2019;2 years ago (2019-01-01)
Founder Rupert Murdoch
Headquarters 1211 Avenue of the Americas, ,
U.S.
Area served
United States
Key people
RevenueIncrease2.svg US$12.3 billion (2020)
Increase2.svg US$2.59 billion (2020)
Decrease2.svg US$999 million (2020)
Total assets Increase2.svg US$21.75 billion (2020)
Total equity Increase2.svg US$10.42 billion (2020)
Owner Murdoch family (39% voting power)
Number of employees
9,000 (2020)
Divisions
Subsidiaries
Website www.foxcorporation.com OOjs UI icon edit-ltr-progressive.svg
Footnotes /references
[2] [3] [4] [5]

Fox Corporation is an American mass media company headquartered in New York City. The company was formed in 2019 as a result of the acquisition of 21st Century Fox by The Walt Disney Company; the assets that were not acquired by Disney were spun off from 21st Century Fox as the new Fox Corp., and its stock began trading on January 1, 2019. [6] [7] [8] The company is incorporated in Delaware.

Contents

It is owned by the Murdoch family via a family trust with 39.6% ownership share; [9] Rupert Murdoch is chairman, while his son Lachlan Murdoch is executive chairman and CEO. Fox Corp. deals primarily in the television broadcast, news, and sports broadcasting industries. They include the Fox Broadcasting Company, Fox Television Stations, Fox News, Fox Business, the national operations of Fox Sports, and others. Its sister company under Murdoch's control, the present-day News Corp, holds his print interests and other media assets.

History

The company name traces back through a series of mergers and demergers to the Fox Film Corporation founded by William Fox on February 1, 1915. [10]

Formation

On December 14, 2017, The Walt Disney Company announced its intent to acquire the motion picture, cable entertainment, and direct broadcast satellite divisions of 21st Century Fox. The remainder of the company would form a so-called "New Fox", maintaining control of assets such as Fox's television network and broadcast stations, Fox News, the national operations of Fox Sports, and the 20th Century Fox studio lot, which would be leased to Disney for seven years. Fox's regional sports networks were to be included in the sale to Disney. [11] [12] In May 2018, it was confirmed that Lachlan Murdoch, rather than James Murdoch, would take charge of the New Fox company. [3]

The merger faced antitrust scrutiny; Disney would not legally be able to own both the ABC and Fox networks due to an FCC policy known as the "dual network rule", which prohibits mergers between the top broadcast networks. [13] The Department of Justice also ordered that Fox's regional sports networks be divested by Disney within 90 days of closing. Disney owns 80% of ESPN, and the Justice Department felt that the Fox regional networks' combination with ESPN would make Disney too dominant in the cable sports market. [14] [15]

In mid-2018, NBCUniversal's parent company Comcast instigated bidding wars over both the Fox assets Disney planned to purchase, and the British broadcaster Sky plc (a company which 21st Century Fox held a stake in, and was planning to acquire the remainder). In July 2018, Fox agreed to an increase of Disney's offer to $71.3 billion to fend off Comcast's counter-bid. [16] [17] British regulators ordered that a blind auction be held for Sky's assets, which was won by Comcast. [18]

On October 10, 2018, it was reported that in preparation for the impending completion of the sale, the new, post-merger organizational structure of "New Fox" would be implemented by January 1, 2019. [4] On November 14, 2018, it was revealed that the new independent company will maintain the original Fox name. [19] On January 7, 2019, Fox Corporation's registration statement was filed by the U.S. Securities and Exchange Commission. [20]

On January 11, 2019, Fox stated in a securities filing that it had no plans to bid on its former regional sports networks; [6] they would instead go to a consortium led by Sinclair Broadcast Group, with Fox Corporation continuing to license the FSN name to those stations until Sinclair developed a new brand (the networks would eventually become Bally Sports). [21] On March 12, 2019, Disney announced that the sale would be completed by March 20, 2019. [22] On March 19, 2019, Fox Corporation officially began trading on the S&P 500, replacing 21st Century Fox on the index. [8] Republican politician and former Speaker of the House Paul Ryan also joined Fox Corporation's board at this time. [2]

Beginning of operations

Fox Corporation began operating separately on March 18, 2019. [2] Chairman and CEO Lachlan Murdoch led a town hall meeting three days later, indicating that stock would be issued to the corporation's employees based on longevity. [23]

In May 2019, via the Fox Sports division, Fox Corporation acquired a 4.99% stake in Canadian online gambling operator The Stars Group for $236 million. As a result, it was also announced that the companies would co-develop sports betting products for the U.S. market under the branding Fox Bet. [24]

In early July 2019, Fox Entertainment announced the formation of SideCar, with executives led by Gail Berman. SideCar is a content development unit for Fox and other outlets. [25]

In August 2019, Fox Corporation announced it would acquire Credible Labs for $397 million and animation studio Bento Box Entertainment for $50 million. [26] [27] [28]

In April 2020, Fox acquired streaming service Tubi for $440 million. [29] [30]

Corporate governance

Board of directors

Executive management

Assets

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References

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