Organizational Change and Strategic Integration in Disney’s Acquisition of 21st Century Fox

Authors

  • Xiaomeng Wan The University of Edinburgh, Edinburgh, EH8 9YL, United Kingdom

DOI:

https://doi.org/10.54097/7rfbf982

Keywords:

Disney Aquisitions, Disney, 21st Century Fox, post-merger integration, strategic change management, 7S framework, dynamic capabilities, cultural resistance, Direct-to-Consumer model

Abstract

This study critically examines the post-merger integration process of Disney’s acquisition of 21st Century Fox, focusing on strategic change management. The analysis applies the Waterman 7S framework, Kotter and Schlesinger’s resistance-to-change strategies, and dynamic capabilities theory to assess structural realignment, cultural integration, talent retention, and skill reconfiguration. Disney successfully implemented a Direct-to-Consumer strategy and expanded its IP portfolio. However, its centralized control model constrained creative autonomy, weakened cultural integration, and created operational overlaps. Path dependency in content development, top-down cultural imposition, and insufficient skill synergy mechanisms are also identified. This study offers practical insights for media industry managers navigating large-scale M&A transformations, with strategic recommendations including rebalancing content portfolios, establishing symbolic leadership roles, and diversifying revenue streams beyond streaming subscriptions.

Downloads

Download data is not yet available.

References

[1] Szalai, G. (2019, March 20). Disney closes $71.3 billion Fox acquisition, creating a media giant. The Hollywood Reporter. https://www.hollywoodreporter.com/

[2] Jiang, Y., Shvets, Y., & Mallick, H. (2023). Correction to: Proceedings of the 2022 2nd international conference on economic development and business culture (ICEDBC 2022). In Advances in Economics, Business and Management Research (pp. C1–C1). Atlantis Press International BV.

[3] Harding, D., Stafford, D., & Kumar, S. (2024). How companies got so good at M&A. Harvard Business Review.

[4] Yin, R. K. (2018). Case study research and applications: Design and methods (6th ed.). SAGE Publications.

[5] Kotter, J. P., & Schlesinger, L. A. (2008). Choosing strategies for change. Harvard Business Review, 86(7), 130–139.

[6] Malnight, T. W., Buche, I., & Dhanaraj, C. (2019). Put purpose at the core of your strategy. Harvard Business Review, 97(5), 70–78.

[7] Palmer, I., Dunford, R., & Buchanan, D. (2021). Managing organizational change: A multiple perspectives approach ISE (4th ed.). McGraw-Hill Education.

[8] Li, J. (2024). Analysis of the Walt Disney's acquisition of 21st Century Fox. Highlights in Business, Economics and Management, 14.

[9] James, M. (2020, March 1). How overlooked Bob Iger transformed Disney and Hollywood. Los Angeles Times. https://www.latimes.com/entertainment-arts/business/story/2020-03-01/bob-iger-transformed-disney-and-hollywood

[10] Faughnder, R. (2019, March 19). Why Disney’s Iger made the 21st Century Fox deal — and what’s next. Los Angeles Times. https://www.latimes.com/business/hollywood/la-fi-ct-disney-fox-iger-20190319-story.html

[11] U.S. Department of Justice. (2018, June 27). The Walt Disney Company required to divest twenty-two regional sports networks in order to complete acquisition of Twenty-First Century Fox, Inc.

[12] Dumont, C. (2018, December 9). Disney's acquisition of Fox nears the finish line. The Motley Fool. https://www.fool.com/investing/2018/12/09/disneys-acquisition-of-fox-nears-the-finish-line.aspx

[13] Collis, D. J. (2020). The Walt Disney Company: The 21st Century Fox acquisition and digital distribution.

[14] Hartney, E. (2021). It's a Disney world after all: Antitrust concerns in the sports and entertainment industry following Disney's acquisition of 21st Century Fox. Chicago-Kent Law Review, 96, 341.

[15] Matlani, J. (2025). Analysis of the Walt Disney Company's acquisition of the 21st Century Fox. SSRN. https://doi.org/10.2139/ssrn.5198740

[16] Hannan, M. T., & Freeman, J. (2009). Organizational ecology. Harvard University Press. https://doi.org/10.2307/j.ctvjz813k

[17] Joseph, J., & Sengul, M. (2023). Organization design: Current insights and future research directions. Academy of Management Annals, 17(1), 1–45. https://doi.org/10.5465/annals.2021.0143

[18] Li, K. (2024). Financial development of Disney: Analyzing box office revenue, derivative products, and audience demographics. Advances in Economics, Management and Political Sciences, 114(1), 195–200. https://doi.org/10.54254/2754-1169/114/2024bj0190

[19] Xu, F. (2025, November). Disney’s Acquisition of Fox: Motivations for 21st-Century M&A. In 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025) (pp. 1253–1264). Atlantis Press.

[20] Exchange4media. (2024, February 19). Disney Star announces retention bonus amid senior-level exits. LinkedIn. https://www.linkedin.com/posts/exchange4media_disney-star-announces-retention-bonus-amid-activity-7183673831297888256-e-EF

[21] Bruce. (2019, March 9). The Walt Disney Company announces extension of exchange offers and consent solicitations for 21st century fox America, inc. The Walt Disney Company. https://thewaltdisneycompany.com/the-walt-disney-company-announces-extension-of-exchange-offers-and-consent-solicitations-for-21st-century-fox-america-inc-notes-11/

[22] Chao, J., Kaetzler, B., Lalani, N., & Lynch, L. (2020, October 12). Talent retention and selection in M&A. McKinsey & Company. https://www.mckinsey.com/capabilities/m-and-a/our-insights/talent-retention-and-selection-in-m-and-a

[23] Agnihotri, A., & Bhattacharya, S. (2021). Dynamics of the Disney–Fox merger. SAGE Business Cases Originals. SAGE Publications.

[24] Teece, D. J. (2023). The evolution of the dynamic capabilities framework. In FGF Studies in Small Business and Entrepreneurship (pp. 113–129). Springer International Publishing.

[25] Teece, D. J. (2025). Business models and dynamic capabilities. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.5108136

[26] Johnson, M., Smith, R., & Lee, C. (2021). Strategic dependency on IP assets: Innovation or inertia? Journal of Media Economics, 34(2), 101–117. https://doi.org/10.1080/08997764.2021.1928641

[27] Alzghoul, A., Khaddam, A. A., Alshaar, Q., & Irtaimeh, H. J. (2024). Impact of knowledge‐oriented leadership on innovative behavior, and employee satisfaction: The mediating role of knowledge‐centered culture for sustainable workplace. Business Strategy & Development, 7(1), e304. https://doi.org/10.1002/bsd2.304

[28] INTOO US. (2019, November 1). HR operations: 5 tips for managing layoffs during a merger. https://www.intoo.com/us/blog/managing-layoffs-hr-operations-tips

[29] The Walt Disney Company. (n.d.). Balance sheet. TradingView. https://tw.tradingview.com/symbols/NYSE-DIS/financials-balance-sheet

[30] Sun, J. (2022). Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022). Atlantis Press International BV.

Downloads

Published

28-07-2026

Issue

Section

Articles

How to Cite

Wan, X. (2026). Organizational Change and Strategic Integration in Disney’s Acquisition of 21st Century Fox. International Journal of Finance and Investment, 5(3), 13-16. https://doi.org/10.54097/7rfbf982