CEO DATELINE - Disney/Fox merger effect on MPAA unclear
CEO DATELINE - Disney/Fox merger effect on MPAA unclear
- December 14, 2017 |
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Walt Williams
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The Walt Disney Co. announced Thursday that it will purchase most of the assets of 21st Century Fox—a deal that will not only have major implications for the film industry but possibly for its trade association, the Motion Picture Association of America.
Disney will pay $52.4 billion for Fox, acquiring the latter's film assets as well as brands such as FX and National Geographic, the Washington Post reported. The company's broadcast networks, Fox News and Fox Business Channel are not part of the deal and will remain in control of Fox chairman Rupert Murdoch and his family.
Regulators and shareholders must approve the deal, but industry analysts are not expecting problems, the newspaper reported. http://wapo.st/2zcuRT2
Disney and Fox are currently two of MPAA's six members. Membership dues accounted for more than $65 million of the $72.6 million the association reported in revenue in 2015, according to the group's most recent tax filing. MPAA has 224 staff and 15 offices across the globe, with major offices in Washington, D.C., and Los Angeles.
Disney's acquisition of Fox could potentially shrink MPAA's revenue if the merged studio only pays dues as a single member, although any dues agreement will need to be worked out by the association's membership. MPAA isn't commenting on the proposed sale, referring questions to Disney.
MPAA has faced potential loss of a member in the recent past. Sony Pictures reportedly threatened to leave the association in 2015 for allegedly being slow to respond to the leaking of hacked emails from the studio. The company also believed MPAA was slow to respond to threats made against movie theaters that planned to show Sony's "The Interview," a comedy about the assassination of North Korean leader Kim Jong-un.
Sony agreed to stay after MPAA agreed to review several proposed reforms to its structure, including the possibility of opening up to new members, the New York Times reported. The association has not added any new members in the intervening years. http://nyti.ms/2AG4iYp
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