Yesterday, Disney once again proved that it's a force to be reckoned with in the entertainment world by dropping $52 billion for 21st Century Fox and an army of beloved pop culture properties. Opinions of this deal vary wildly depending on which corner of the internet that you check (some are optimistic, and some are definitely not), but now some of the finer details have finally started to roll in and become clear. Specifically, the number of jobs that could be lost as a result of this deal is staggeringly large.
As of right now, it's looking like anywhere between 5,000 and 10,000 jobs could be lost because of Disney's acquisition of 21st Century Fox. The assessment was made by analyst Rich Greenfield, who claims that the expected $2 billion on cost synergies that will result from the deal will primarily come from the decision to trim the workforce to reduce redundancies. Other assessments have appraised Disney's cost synergies even higher in the $2.5 billion range, but no matter what, it's clear that this could lead to some massive layoffs in the long term.
Of course, even in the face of this Deadline report, it's worth mentioning that we still don't know much about how this detail will affect the entertainment industry. It's going to take at least 18 months to go into effect, largely as a result of reviews by government regulatory committees that ensure everything is on the up and up. As the deal has only just gone through, we will have to wait and see how things change at both companies as the official transition date draws near.
Despite some concerns over possible jobs lost as a result of this merger, it also deserves to be pointed out that this business decision does open up a large number of potential creative avenues in the world of blockbuster storytelling. Chief among these is the integration of the Fox-owned Marvel properties (such as X-Men and Fantastic Four) with the Marvel Cinematic Universe, but there are also options that involve the use of other franchises like Alien, Predator and Die Hard. Disney has an excellent track record of reliable films from the last few years, so hope remains high that successful projects could eventually lead to a need for more workers as new plans get approved and go into production.
CinemaBlend will bring you any and all relevant updates related to the Disney-Fox deal as new information about the behemoth business decision is made available to us. As you wait for further details to flow in, make sure to take a look at the remainder of our 2017 movie premiere guide, as well as our 2018 movie premiere guide, to learn what all of the studios have on the slate for the next year!