The world's largest entertainment company is about to get even larger: Disney has struck a $68 billion deal to buy a large chunk of Rupert Murdoch's 21st Century Fox.
It could have a big influence on the movies and TV shows you watch and how you watch them.
What exactly is Disney buying?
First, the big ones: the deal includes 21st Century Fox's film and television studios and its cable entertainment networks.
That means Disney will soon have its hands on TV shows like Modern Family and The Simpsons, as well as the studios behind movies like Avatar and Gone Girl.
Also, remember when Disney bought Marvel in 2009?
Well, that didn't include some of Marvel's biggest characters, because Fox still owned the rights to the X-Men, Fantastic Four and Deadpool. So Disney's deal with Fox will finally bring these superheroes together again.
When the possibility of a deal was first reported, Deadpool actor Ryan Reynolds expressed scepticism about what it would mean for his franchise:
There's a good chance Disney won't take up the suggestion he tweeted after the deal was announced:
As well, through Fox's stake in the Hulu video streaming service, Disney will assume majority control of one of Netflix's main competitors.
Disney will also acquire Fox's international satellite assets including the Star TV network in India, a stake in European pay-TV provider Sky PLC, as well as sports rights in several countries.
And finally, the deal includes 22 of Fox's regional US sports networks that have the rights to televise live games of professional baseball, basketball and hockey teams as well as popular college and high school games.
Oh, and less excitingly for Disney, they'll also be taking on about $18 billion of Fox debt…
Will Disney be allowed to do this?
It's an obvious question to ask since we're talking about such a big shift in the media landscape.
However, a majority of antitrust experts contacted by Reuters said the deal would likely win approval from US antitrust authorities, although they said the US Department of Justice may require asset sales or conditions.
The deal is expected to close in 12 to 18 months. Disney chief executive Bob Iger, 66, will extend his tenure through the end of 2021 to oversee the integration.
Why is Disney spending so big?
Basically, it's trying to future-proof itself.
The company plans to launch its own streaming service in 2019, a calculated gamble that it can generate more profit in the long run from its own subscription service.
So the deal with Fox will give Disney an arsenal of shows and movies to combat growing digital rivals Netflix and Amazon.
Disney has been struggling to bolster its TV business as cancellation of cable subscriptions is pressuring its biggest network, sports channel ESPN.
"The deal illustrates the huge strategic challenge traditional media companies face and how they need to reinvent their business models to compete with digital, online competitors such as Netflix, Google and Amazon," said Nick Jones, partner and head of technology at Cavendish Corporate Finance.
"(It) helps Disney dramatically reduce its reliance on traditional television, a business that has declined over the last two decades."
Do investors like the sound of all this?
Yes, so far.
Shares of Fox, which have surged more than 30 per cent since talk of the deal surfaced in early November, climbed more than 5 per cent following the announcement.
Disney shares rose more than 3 per cent after the company announced it would buy up to $20 billion of its own shares to offset dilution from the all-stock deal.
What does this mean for the future of Fox?
The new, slimmed down Fox will focus on TV news and sport.
"This will be a growth company, centred on live news and sports brands and the strength of the Fox network," 21st Century Fox executive chairman Rupert Murdoch told investors.
He said Fox was not retreating, but rather "pivoting at a pivotal moment".
Immediately before the acquisition, Fox will separate the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, its sports channels FS1, FS2 and the Big Ten Network into a newly listed company that it will spin off to its shareholders.
Fox stockholders will receive 0.2745 Disney shares for each share held and will end up owning about a quarter of Disney.
The deal brings to a close more than half a century of expansion by Mr Murdoch, the 86-year-old who turned a single Australian newspaper he inherited from his father at the age of 21 into one of the world's most important global news and film conglomerates.
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