Chinese regulators vested Walt Disney Company's planned acquisition of 21st Century Fox with its unconditional approval, drawing the $71.3 billion takeovers closer to 2019 target closing.
The acquisition if completed will give birth to a whole new subsidiary that will only be called as simply FOX.
Disney's planned takeover of 21st Century Fox still has to go through numerous regulatory nods across different countries from all over the world, but, the green light from China is significant for Disney as it eases uncertainties over the ongoing China-US trade war, CNBC said. More so, the nod for China also assured Disney access to the world's second-largest box office market by revenue.
CNBC reported that Disney stocks climbed about 1 percent and Fox shares rose roughly 3 percent after it broke the news.
Analysts were also impressed about China's unbridled approval given that European regulators gave theirs on condition that Disney will sell its stakes in A&E Networks, including History, and Lifetime channels, The New York Times reported.
The United States also gave its nod to the planned acquisition provided that Disney exclude Fox's 22 regional sports networks and the Yankee's YES channel.
Disney has been keen in complying with requirements thrown at them, an indication that it is serious with its goal of launching FOX by spring of 2019. In November, during the company's reporting of its fourth quarter and full year earnings, Chief Executive Officer Robert Iger underscored the company's commitment to the deal, saying it remained focused on the successful completion and integration of its 21st Century Fox acquisition.
Similarly, 21st Century Fox Executive Chairmen Rupert and Lachlan Murdoch stated that they remained focus on completing its deal with Disney to launch FOX in the first half of 2019. The executives added that its goal for the next financial year relies heavily on what FOX could bring in the table.
21st Century Fox, however, reiterated that the acquisition excludes FOX Broadcasting Company, FOX Television Stations, FOX News Channel, FOX Business Network, FS 1, FS 2, and Big Ten Network.
Nonetheless, Disney's acquirement of 21st Century Fox gives it access to over 30 series currently in production. It will also have ownership to the movie studio that is behind the success of both the "X-Men" and the "Avatar" franchises.
Disney will also be owning established cable networks FX and National Geographic, aside from a controlling stake in Hulu and India's fast-growing media company, Star. To date, Hulu has over 20 million subscribers.
