Disney will lease space on the Fox lot in Century City, California, for seven years in the aftermath of the company’s acquisition of 21st Century Fox, multiple individuals with knowledge of the situation told TheWrap.
It’s unclear exactly when Disney will become Fox’s tenant because the merger will take 12 to 18 months to complete, pending regulatory approval. The Murdoch family will continue to own the West L.A. lot.
In a town hall meeting on the lot on Thursday, 21st Century Fox president Peter Rice informed employees of the lease agreement and assured them that no one would be relocated from the lot in the near future.
Earlier on Thursday, Disney officially acquired much of 21st Century Fox for $52.4 billion in stock, with the mammoth deal closing after more than a month of talks.
The buyout infuses the Mouse House with a bevy of Fox properties, including its film and TV studios and much of its non-broadcast television business, such as FX, regional sports networks and Nat Geo, among other channels. Properties like “X-Men,” “Fantastic Four” and “Deadpool” will return to the Marvel family at Disney, alongside “Avatar” and “The Simpsons.”
Meanwhile, Murdoch-run Fox will retain the Fox Broadcasting network and 28 owned-and-operated U.S. TV stations, Fox News Channel, Fox Business Network, FS1, FS2 and the Big Ten Network. These will be formed into a “new FOX” company that will be spun off to its shareholders.
The total transaction value of this mega-deal is approximately $66.1 billion.