Question

On July 27, 2018, shareholders of the Walt Disney Company and 21st Century Fox agreed to a $71.3 billion purchase plan that gave Disney the bulk of the Fox media empire, substantially altering the entertainment landscape. What was LEAST likely among Disney's considerations in completing its acquisition of Fox?

a. purchasing a powerful and well-known brand name that could be transferred to the products of other businesses and thereby used as a lever for driving up the sales and profits of such businesses.
b. opening up new avenues for reducing costs by diversifying into closely related businesses such as direct-to-consumer streaming of media content.
c. leveraging existing resources and capabilities by expanding into related industries where these same resource strengths were key success factors and valuable competitive assets.
d. expanding into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.
e. expanding into industries whose technologies and products complemented its present media and entertainment businesses.

Answer 1

d. expanding into additional businesses that unlock possibilities for a comprehensive cost enhancement strategy.

Step-by-step explanation:

Before the acquisition, Disney was much larger than Fox and it was a much more diversified corporation, so it hard to believe that acquiring Fox would result in expanding into new businesses. If the transaction was inverse, Fox acquiring Disney, then this option would be true. Fox would be entering new businesses and markets, e.g. theme parks, cruise lines, toys and merchandising, etc.