Final answer:
Disney's acquisition of Fox Studios was primarily done to increase its market size, acquire a vast content library for Disney+, and gain new product lines such as additional Marvel characters. While the merger posed typical integration challenges, it was deemed successful due to regulatory approval and the financial benefit to Fox's shareholders, alongside Disney's expanded content offering.
Step-by-step explanation:
Reasons for Disney's Acquisition of Fox Studios
Disney decided to purchase Fox Studios for several strategic reasons. One major reason was to become larger and extend its dominance in the entertainment industry. A second reason was to gain access to Fox's extensive library of content, which includes movies and TV shows valuable for Disney's then-new streaming service, Disney+. Thirdly, to acquire new product lines and intellectual properties, such as the X-Men and Fantastic Four, which could be integrated into Disney's already profitable Marvel cinematic universe.
Success of the Merger
The success of the merger can be gauged by the way Disney has managed to incorporate Fox’s assets into its own operations. However, mergers often lead to organizational challenges like staff reductions and clashes in company culture. The Disney and Fox merger was approved, indicating that regulatory bodies deemed it acceptable under antitrust laws, which is also an indicator of success. While some negative consequences are typical in a merger, the overwhelming content expansion for Disney suggests a relative success. Fox shareholders benefitted financially from the deal, although the long-term impact on both companies' corporate identities and operations is still unfolding.