20th Century Studios



Twentieth Century Fox Film Corporation, often called simply 20th Century Fox, is an American film production company that is located in southern California. The studio was involved in the development of the original Star Wars trilogy and subsequently distributed the prequel trilogy. Located in the Century City area of Los Angeles, just west of Beverly Hills, the studio is currently a subsidiary of 21st Century Fox, a spin-out (and de facto successor) of Rupert Murdoch's News Corporation.

20th Century Fox was actually not George Lucas's first choice for a distibutor of the film, having been preceded at least by Universal Studios, who turned his offer down. Lucas convinced Fox, or more specifically Alan Ladd, Jr., to finance Star Wars, due primarily to Ralph McQuarrie's artwork. In 1977, the company's risky investment paid off when Star Wars became an enormous hit. Fox's stock skyrocketed, and despite the sale of Star Wars merchandising and sequel rights to Lucas, the company still made strong profits.

Current ownership rights
Even after the release of Fox's final Star Wars film, Fox continues to earn profits from the franchise due to DVD sales and distribution revenue.

Despite the Walt Disney Company's 2012 purchase of Lucasfilm Ltd. and the release rights to all future Star Wars films, Fox was to retain original distribution rights to Star Wars: Episode IV A New Hope, which they co-produced and co-financed, in perpetuity in all media worldwide. Fox was also to retain theatrical, nontheatrical, and home video rights worldwide for the franchise's five subsequent films, which Lucasfilm produced and financed independently, through May 2020, at which time ownership was to transfer to Disney. This complex relationship between Disney and Fox, particularly in regards to Fox's perpetual rights to Episode IV, was to create an obstacle for any future boxed set comprising all nine films. On December 14, 2017, the Walt Disney Company announced that it is acquiring most of Fox's parent company, 21st Century Fox, including the film studio and all distribution rights to A New Hope for $52.4 billion.

On May 7, 2018, shares of Fox rose 5.1% when a report was released that Comcast was in talks with investment banks and firms in order to obtain bridge-financing for an all-cash bid, reportedly worth $60 billion, that threatened the Disney-Fox deal.

On May 29, it was reported that Disney was looking into making its own all-cash counter-offer for Fox assets in the event that Comcast went through with their offer. The next day, Disney and Fox announced that they have set their shareholder vote meetings for July 10, though both companies have stated that Fox's meeting could be postponed if Comcast came through with their offer.

On June 12, AT&T was given approval by District Judge Richard J. Leon to acquire Time Warner, easing concerns Comcast had regarding whether government regulators would block their bid for Fox. Consequently, the next day, Comcast mounted a bid of $65 billion for the 21st Century Fox assets that were set to be acquired by Disney.

On June 14, Bloomberg News reported that the New York Yankees were seeking to invoke a clause in Fox's purchase of stakes in YES Network, allowing them to buy back Fox's stake in the event of a change in ownership (and thus prevent it from being included in the sale).

On June 18, it was reported that Disney will add to its already existing $52 billion claim to contest Comcast's proposed counter-offer for the Fox assets.

On June 19, it was reported that Disney has agreed to acquire Sky News from Sky itself.

On June 20, Disney and Fox announced that they had amended their previous merger agreement, upping Disney’s offer to $71.3 billion (a 10% premium over Comcast's $65 billion offer), while also offering shareholders the option of receiving cash instead of stock.

On June 21, Murdoch said in response to Disney's higher offer: "We are extremely proud of the businesses we have built at 21st Century Fox, and firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace at a dynamic time for our industry." That still does not prevent other companies from making a bid, as the deal was needed to be voted on by shareholders. Iger explained the reasoning behind the bid: "Direct-to-consumer distribution has actually become an even more compelling proposition in the six months since we announced the deal. There has just been not only a tremendous amount of development in that space, but clearly the consumer is voting—loudly."

On June 27, the United States Department of Justice gave antitrust approval to Disney under the condition of selling Fox's 22 regional sports channels, to which the company has agreed to.

On June 28, Disney and Fox boards scheduled July 27, 2018 as the day shareholders vote on Fox's properties being sold to Disney.

On July 11, 21st Century Fox raised its bid to purchase Sky's assets to $32.5 billion, and $18.57 a share. In response, Comcast increased its bid to $34 billion, and $19.5 a share. At the same time, Fox was given clearance by the British government to purchase Sky. The bidding war for Sky led to some analysts speculating that Comcast could give up bidding for 21st Century Fox in favor of a smaller battle.

On July 12, the Department of Justice filed a notice of appeal with the D.C. Circuit to reverse the District Court's approval for AT&T acquisition of Time Warner (now WarnerMedia). Although analysts say that the chances of the DOJ win are small, they say it is the "final nail in the coffin for Comcast's Fox chase. This is a clear gift to Disney." On the next day, CEO of AT&T Randall Stephenson gave an interview with CNBC, about Comcast's bid for Fox: "It probably can't help it. You're in a situation where two entities are bidding for an asset, and this kind of action can obviously influence the outcome of those actions."

On July 13, Disney received the support of the Institutional Shareholder Services and Glass Lewis, the two most prominent proxy adviser firms in the world. Fox shareholders were recommended by the advisers as means to provide for Disney's future. Also on that same day, British regulators have decided that if Disney purchases Fox's assets before Sky's purchase from either Fox or Comcast, it will be forced to launch a bid for the full ownership of Sky, at a minimum of $18.6 a share.

On July 16, CNBC reported that Comcast was unlikely to continue its bidding war to acquire Fox from Disney in favor of Sky.