Disney Will Soon Control 40% of the Box Office

Disney just spent $71.3 billion to acquire the majority of 21st Century Fox and based on the popular franchises that come with that purchase, the company will certainly be getting plenty of bang for its buck. To name a few, Avatar, Deadpool and the X-Men franchises all come with the territory now owned by Disney. According to CNN, Disney’s decision to purchase 21st Century Fox in its entirety would mean that the media giant will control 40% of the entire box office.

For those who would love to see X-Men characters cross into the Marvel Comics Universe, this is great news! However, not everyone is looking forward to Disney’s acquisition of Fox. FBR Capital Markets Managing Director Barton Crockett explained: “They’ll have so much share, that it will seem to give them leverage up and down the supply chain…It’s what happens in a world where one studio, mainly Disney, is having outsized success in doubling down on its investments, and most of the other studios seem to be on their heels a bit when it comes to making movies.”

Many of Disney’s most profitable properties were purchased. This includes the acquisition of Lucasfilm for $2.2 billion in 2012 and Pixar for $7.4 billion in 2006. When speaking to CNN, Crockett shared, “If they continue to grow their share of the domestic box office, it’s hard to escape the conclusion that they’d have leverage over time to get an even higher share of movie receipts.” He added that Disney will become the “Walmart of Hollywood”.