Disney has come up with an agreement with 21st Century Fox over a $53.4 billion merger deal. The mega merger was announced yesterday bringing the world’s largest and third largest entertainment companies together into one roof. A merger of the two can now open up previously unattained possibilities.
Both Disney and Fox had rights to Marvel films. A division of such rights posed problems bringing cross overs between the two studios. Earlier this year, Disney managed to prop up a deal to bring Spider man to the Avengers but this happened after significant struggles. Disney has now decided to end the problem finally by acquiring Fox altogether.
Since the acquisition has gone through, X-Men, Fantastic Four, Deadpool, Venom and Gambit will all come under Disney’s umbrella. We might even see the different groups cross over with the Avengers and fight as one. Moreover, it can also provide Disney with more content to work with in terms of future story lines. Most of the major Marvel villains have come from the Fantastic Four story line. After Thanos, Disney can expand its story line using Galactus ( A Fantastic Four Super Villain).
While the merger is a real big deal, I would play the Devil’s advocate here and say it can have some repercussions. Deadpool for instance follows an R rated story plot. The type of commodity doesn’t go well with the Disney’s Brand Mantra, Fun, Family, Entertainment. There is a possibility that movies like Deadpool and Venom are tweaked and brought to the Disney style.
Disney and Fox despite reaching the deal, still must go through some massive complications. An amalgamation of such mammoth entities means less competition, more monopoly, and a right to dictate terms to the consumers and the industry. The US Department of Justice (DoJ) have already blocked a merger between AT&T and Time Warner and also warned that it isn’t in favor of Defensive Mergers.
Yet for the time being this seems to be a real mouth watering partnership which will open the door to numerous possibilities.