Disney CEO Bob Iger announces Fox deal

Iger explained how the blockbuster acquisition would enable Disney to accelerate its use of streaming technologies to connect directly with audiences and provide more appealing entertainment options.
7:14 | 12/14/17

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Transcript for Disney CEO Bob Iger announces Fox deal
And a lot of questions for the man in charge, Disney's CEO Bob iger joins us now. Thanks for joining us this morning. $52.4 billion according to the press release. That is a huge bet. Why are you making it? Well, we're making it because this gives us the ability to marry the great content of fox with the great content of Disney. It gives us a much larger international footprint and enables us to use cutting-edge technology to reach consumers in far more compelling ways and know how important that is in today's world. Explain that. What difference is this going to make to everyone at home watching? Well, I think it's pretty clear today that consumers want access to entertainment, one, that is high quality, but, two, want access pretty much any time, anywhere, anyhow and requires new technology to be able to deliver it in that fashion. Hulu certainly provides that so the controlling stake in hulu that we will acquire with this acquisition is one way to provide it. Another is the fox international footprint has some extremely high-end technology to deliver all this content to consumers in more modern ways, star India another one. So to the consumer not only will they get great content but they'll get it in ways that they demand. Innovative ways that today's consumer requires really in terms of increasing or their consumption or enjoying their consumption. Is it fair to think of Disney becoming a new Netflix? Well, we've been in the process of launching a direct to consumer service, it's one of the primary priorities of the company right now, to give us the ability to reach consumers directly and we're going to launch an ESPN direct service in 2018 and a Disney brand service in 2019. This clearly will jump-start those efforts, give us more content, more producing capabilities for those services and we're not really looking to necessarily reach the scale of Netflix quickly. But we certainly aim to be, you know, an able competitor to theirs but more importantly we believe this is the way of the future to be able to reach consumers directly, it's clearly a value proposition associated with that but also something consumers want because in doing so you can tailor it to consumers in more personalized ways. A lot of changing coming in the future. You were supposed to leave this position in 2019. You're going to stay now? I am going to stay till the end of 2021. I've got one of the greatest jobs in the world. I've enjoyed doing it for 12 years and this combination makes it even more exciting and looking forward to the future at Disney. You just can't quit Disney. I think this is the third time you were supposed to go? I lost -- I think -- I think I lost track. Well, I have to ask -- I like "Good morning America" so much that I want to stay involved with all of you. We appreciate that. I have to ask, there's been a lot of speculation about a future in politics for you, even a run for president in 2020 so that's off the table? Well, I haven't made any decisions about what my future was going to be but as I said I enjoy this job immensely and looking forward to doing for a couple more response. That was a political response. That was not a confirmation or denial. I'm sticking around to the end of 2021 so you do the math. Let me ask you about the murdochs. A big sale for them, as well. Why do you think they wanted to make the deal with Disney? Well, I have a lot of respect for Rupert Murdoch and what he's been able to build, that company over the years, and he and I were musing about the need to reach consumers in the way I described and the disruptive forces we both witnessed in our time in this business and after some musing it seemed to me there might be an opportunity to puour companies together and to create something that's even better than the two that were separate companies. And so I think he viewed this as not only good for the assets he had built but good for the shareholders of his company. They'll get shares of Disney shareholders of 21st century fox will own roughly, 24%, 25% of Disney and when you look at that combination and the value of that currency, the disney/21st century fox currency I think from a shareholder perspective it is compelling. I think he was excited about the possibilities, this combined company could deliver, and excited by the value creating possibilities, as well. His sons,@ they've been playing major roles in the fox corporation. Is James Murdoch going to be coming to Disney? They'll be -- they'll be announcing or they are announcing some plans of their own right now. James and I will be talking over the next number of months. He's going to be integral to the integration process and discuss whether there is a role for him or not at our company. We've seen the government pushing back against this time warner/at&t deal. Expecting any resistance to this merger? Well, this is different kind of merger than theirs. I won't comment necessarily on their, but we're hoping that the government takes a look at this from a consumer point of view and what we are aiming to do as I discussed is create more high quality content really on a global basis and to deliver it to consumers in more exciting ways, in ways that they demand and ways that they deserve and so we believe that from a regulatory perspective while it will go through a considerable amount of scrutiny globally this should be viewed as a positive combination from a consumer perspective and because of that we think the regulators -- we hope the regulators will look at it kindly. Bob iger, thanks very much. Congratulations. I have to say, Bob, whether it's the parks or it's this kind of deal, that the consumer, that's at the forefront of all your thoughts, majority. It is, you know, when you think about Disney and you think about the things that we made under the Disney brand and Pixar and marvel and lucasfilms and "Star wars," by the way, that movie is coming out today so pretty excited about that as well and add to that those great assets at fox including "Avatar" or on their television side, FX and the great shows they've created and national geographic, very, very powerful and from a consumer perspective very, very attractive brand and product and you add to that the global footprint, you know, we think that from a global consumer perspective this will be an incredible company and serve consumers really well. Thanks for joining us this morning, Bob. Thank you, Bob. Thank you. Thank you very much. Great news about the merger and the fact that he's going to be staying on till 2021 to run the company.

This transcript has been automatically generated and may not be 100% accurate.

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