Fox Corporation Explained

Fox Corporation
Type:Public
Industry:Media
Predecessor:21st Century Fox
Founder:Rupert Murdoch
Hq Location City:New York City
Hq Location Country:U.S.
Area Served:Worldwide
Products:Television programs
web portals
Services:Broadcasting
Licensing
Streaming
Television
Revenue Year:2024
Operating Income: US$1.837 billion
Income Year:2024
Net Income: US$1.501 billion
Net Income Year:2024
Assets: US$21.97 billion
Assets Year:2024
Equity: US$10.71 billion
Equity Year:2024
Num Employees:10,200 (2024)
Owner:Murdoch family (39% voting power)
Footnotes:[1] [2] [3]

Fox Corporation (stylized in all-caps as FOX Corporation[4]), also known simply as Fox, is an American multinational mass media company headquartered at 1211 Avenue of the Americas in Midtown Manhattan. Incorporated in Delaware, it was formed as the portion of 21st Century Fox that was not acquired by The Walt Disney Company in 2019.[5] [6] [7] [8] The company is controlled by the Murdoch family via a family trust with 39.6% ownership share, and by Rupert Murdoch himself to the effect of almost 40%.[9] [10]

Rupert Murdoch is chair emeritus, while his son Lachlan Murdoch is executive chair and CEO. Fox Corp. deals primarily in the television broadcast, news, and sports broadcasting industries. Its assets include the Fox Broadcasting Company, Fox Television Stations, Fox News, Fox Business, Fox Sports, Tubi, and others. Murdoch's newspaper interests and other media assets are held by News Corp, which is also under his control.

On September 21, 2023, Rupert Murdoch announced that he was stepping down as the chairman of Fox Corporation, effective November 2023.[11]

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.[12]

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, including 20th Century Fox, for $52.4 billion. 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 (which Disney, already owning ABC, would be legally unable to own due to an FCC policy known as the "dual network rule", which prohibits mergers between the top broadcast networks), 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 also included in the sale, but were later divested by order of the Department of Justice, on the grounds that the Fox regional networks' combination with Disney's 80% ownership of ESPN would make Disney too dominant in the cable sports market.[13] [14] [15] [16] [17]

In May 2018 it was confirmed that Lachlan Murdoch, rather than James Murdoch, would take charge of the New Fox company.[18]

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.[19] [20] British regulators ordered that a blind auction be held for Sky's assets, which was won by Comcast.[21]

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.[22] On November 14, 2018, it was revealed that the new independent company will maintain the original Fox name.[23] On January 7, 2019, Fox Corporation's registration statement was filed by the U.S. Securities and Exchange Commission.[24]

On January 11, 2019, Fox stated in a securities filing that it had no plans to bid on its former regional sports networks;[5] 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).[25] On March 12, 2019, Disney announced that the sale would be completed by March 20, 2019.[26] On March 19, 2019, Fox Corporation officially began trading on the S&P 500, replacing 21st Century Fox on the index.[7] Republican politician and former Speaker of the House Paul Ryan also joined Fox Corporation's board at this time.[2]

Under the terms of the acquisition, Disney will phase out the Fox brand usage by 2024.[27]

Beginning of operations

Fox Corporation began operating separately on March 19, 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.[28]

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.[29]

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.[30]

In August 2019, Fox Corporation acquired Credible Labs for $397 million and animation studio Bento Box Entertainment for $50 million.[31] [32] [33]

On April 20, 2020, Fox Corporation acquired streaming service Tubi for $440 million.[34] [35]

In June 2020, SideCar was shut down by Fox.[36]

In September 2021, Fox Corporation acquired TMZ from WarnerMedia in a deal worth about $50 million with TMZ being operated under the Fox Entertainment division.[37]

In December 2021, Fox Corporation acquired the film and television production studio MarVista Entertainment.[38] [39]

In September 2022, Fox Corporation announced the launch of Fox Entertainment Studios. This is the company's first venture into entirely in-house television production. The studio debuted its first show, Monarch, on September 11, 2022.[40] Fox also announced that Fox Entertainment would re-enter the international distribution business by launching a sales unit called Fox Entertainment Global.[41]

Abandoned re-merger with News Corp

On October 14, 2022, it was announced that, under the instruction of Rupert Murdoch, a special committee had been established to explore a potential merger of Fox and News Corp, bringing the two companies back together since the former 21st Century Fox was spun-off from News Corp in 2013.[42] On January 24, 2023, the proposed merger was abandoned by Murdoch.[43] [44]

Assets

See main article: List of assets owned by Fox Corporation. The company consists of the former 21st Century Fox's media and broadcasting properties that were owned by its predecessor, such as the Fox Broadcasting Company and Fox Sports Media Group.[45]

Notes and References

  1. Web site: FY 2024 Annual Report (Form 10-K). August 8, 2024. U.S. Securities and Exchange Commission.
  2. Web site: Fox Corporation Emerges as Standalone Entity, Paul Ryan Joins Board. Littleton. Cynthia. Steinberg. Brian. March 18, 2019. Variety. March 19, 2019.
  3. EARNINGS RELEASE FOR THE QUARTER AND FISCAL YEAR ENDED JUNE 30, 2019. New York, NY. Fox Corporation. August 7, 2019. October 2, 2019.
  4. Web site: About Us . Fox Corporation . September 22, 2021.
  5. News: Littleton. Cynthia. Fox Confirms It Won't Bid on Disney's Regional Sports Networks. Variety. January 11, 2019. January 11, 2019.
  6. Web site: 21st Century Fox Announces Pricing Of Senior Notes By Fox Corporation. January 15, 2019. February 1, 2019. https://web.archive.org/web/20190202212404/https://www.21cf.com/news/21st-century-fox/2019/21st-century-fox-announces-pricing-of-senior-notes-by-fox-corporation/. February 2, 2019. dead.
  7. Web site: Chang . Sue . Fox Corp. to replace Twenty-First Century Fox on S&P 500 . . March 19, 2019 . March 14, 2019.
  8. Web site: fox-10k_20190630.htm . 2022-08-05 . www.sec.gov.
  9. Web site: Viet. Dinh. November 12, 2020. 2020 Notice of Meeting and Proxy Statement (Page 63). Fox Corporation INVESTOR RELATIONS. 63.
  10. Web site: Darcy . Oliver . 2023-03-01 . Fox executives should be fired for 'proven misconduct' exposed in Dominion lawsuit, renowned Yale professor says CNN Business . 2023-07-27 . CNN . en.
  11. Web site: Rizzo . Lillian . 2023-09-21 . Rupert Murdoch steps down as chairman of Fox and News Corp . 2023-09-21 . CNBC . en.
  12. News: Post Staff Report . Is Fox really 75 this year? Somewhere, the fantastic Mr. (William) Fox begs to differ . January 22, 2020 . . February 10, 2010 . en.
  13. Web site: Disney wins US antitrust approval to buy Fox assets. CNBC. June 27, 2018. June 27, 2018.
  14. News: News Corp. divides into two companies; 21st Century Fox is born. James. Meg. June 28, 2013. Los Angeles Times. April 19, 2019. 0458-3035.
  15. News: Disney to Buy 21st Century Fox Assets for $52.4 Billion in Historic Hollywood Merger. Littleton. Cynthia. December 14, 2017. Variety. February 8, 2018. Steinberg. Brian.
  16. Web site: FCC Reviewing Rule Prohibiting Mergers Among Big Four Broadcast Networks. Gardner. Eriq. December 12, 2018. The Hollywood Reporter. March 19, 2019.
  17. Web site: Justice Department Approves Disney's Acquisition of 21st Century Fox With Divestiture of Regional Sports Networks. Littleton. Cynthia. June 27, 2018. Variety. June 27, 2018.
  18. Web site: Lachlan Murdoch, not James, will lead New Fox company . Disis . Jill . CNN . May 16, 2018 . May 17, 2018 . https://web.archive.org/web/20180517012745/https://money.cnn.com/2018/05/16/media/lachlan-murdoch-new-fox-ceo/index.html . May 17, 2018 . live.
  19. Web site: Sorry, Comcast: Fox and Disney sign new merger deal, rejecting Comcast bid. Brodkin. Jon. June 20, 2018. Ars Technica. June 20, 2018.
  20. News: Disney Ups Its Bid for 21st Century Fox to $71.3 Billion. Lee. Edmund. June 20, 2018. The New York Times. April 19, 2019. 0362-4331.
  21. News: Rupert Murdoch's Sky reign to end as Fox sells all shares to Comcast. Waterson. Jim. June 26, 2018. The Guardian. September 27, 2018. 0261-3077.
  22. Web site: Fox Will Be Ready to Close Disney Deal Jan. 1, Says Peter Rice (EXCLUSIVE). Holloway. Daniel. October 10, 2018. Variety. https://web.archive.org/web/20181011133308/https://variety.com/2018/biz/news/disney-fox-deal-will-be-ready-to-close-jan-1-says-peter-rice-exclusive-1202976061/. October 11, 2018. live. November 21, 2018.
  23. Web site: Official Name of New Fox Is, Uh, Fox – and Other Takeaways From Annual Stockholders Meeting. Donnelly. Matt. Variety. November 14, 2018. November 15, 2018. https://web.archive.org/web/20181114233118/https://variety.com/2018/tv/news/21st-century-fox-new-name-disney-1203028619/. November 14, 2018.
  24. Web site: 21st Century Fox Files Registration Statement With SEC To Form 'New' Fox. Chmielewski. Dawn. Deadline Hollywood. January 7, 2019. January 7, 2019.
  25. Web site: Wilen . Holden . Sinclair CEO see 'massive opportunity' with rebranding of Fox sports networks . . October 21, 2019 . August 26, 2019.
  26. Web site: Littleton . Cynthia . Disney Sets March 20 Closing Date for 21st Century Fox Acquisition . . March 15, 2019 . March 12, 2019.
  27. Web site: FISCAL YEAR 2020 ANNUAL FINANCIAL REPORT . The Walt Disney Company . October 2, 2021 . 79.
  28. News: Otterson . Joe . Holloway . Daniel . New Fox CEO Lachlan Murdoch Announces All Employees to Receive Stock in Company . July 9, 2019 . Variety . March 21, 2019.
  29. Web site: Soshnick . Scott . Novy-Williams . Eben . Fox buys US$236M Stars Group stake to enter betting market . . October 2, 2019 . May 8, 2019.
  30. News: Low . Elaine . SideCar, Fox Entertainment's Content Development Accelerator, Names Exec Team . July 9, 2019 . Variety . July 8, 2019.
  31. Web site: Duran . Paulina . Murdoch's Fox Corp to buy fintech Credible Labs in $397 million deal . Reuters . August 5, 2019 . August 5, 2019.
  32. Web site: Andreeva . Nellie . Fox Entertainment Acquires 'Bob's Burgers' Animation House Bento Box . August 6, 2019 . . August 6, 2019.
  33. Web site: Flint . Joe . Fox to Buy Bento Box, the Animation House Behind 'Bob's Burgers' . . November 9, 2019 . August 6, 2019.
  34. Web site: Baysinger . Tim . Fox Buys Ad-Supported Streaming Service Tubi in $440 Million Cash Deal . . March 17, 2020 . March 17, 2020.
  35. Web site: Goldsmith . Jill . Fox Closes Purchase Of Tubi In Day Of Streaming Deals . Deadline Hollywood . April 22, 2020 . en . April 20, 2020.
  36. Web site: Porter . Rick . June 12, 2020 . Fox Disbands SideCar; Gail Berman Returning to Jackal Group . 2022-07-11 . The Hollywood Reporter . en-US.
  37. Web site: Hayes . Dade . Fox Entertainment Closes Acquisition Of TMZ From WarnerMedia . . September 13, 2021 . September 13, 2021.
  38. News: Porter . Rick . Fox Acquires TV Movie Producer MarVista Entertainment . December 14, 2021 . . December 13, 2021.
  39. Web site: Andreeva . Nellie . Fox Entertainment Acquires Top TV Movie Producer & Distributor MarVista Entertainment . . December 14, 2021 . December 13, 2021.
  40. Web site: FOX Entertainment Bolsters 2022–23 Program Slate Across Network and Streaming with New Comedies, Dramas, Unscripted Series and Made-For-Platform Movies .
  41. Web site: Whittock . Jesse . September 20, 2022 . Fox Re-Enters International Distribution Business With Launch Of Sales Unit Fox Entertainment Global . 2022-09-23 . Deadline . en-US.
  42. Web site: October 15, 2022 . Rupert Murdoch considering merging Fox and News Corp once again . 2022-10-17 . the Guardian . en.
  43. Web site: Fox-News Corp. Merger Dead as Rupert Murdoch Says Deal "Not Optimal" For Shareholders. The Hollywood Reporter. Weprin. Alex. January 24, 2023. January 24, 2023.
  44. News: Cohan . William D. . 2023-07-04 . Opinion No One Can Stop Rupert Murdoch. That's Increasingly a Problem. . en-US . The New York Times . 2023-07-27 . 0362-4331.
  45. Web site: Businesses Archive . Fox Corporation . January 19, 2022.

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