Iger Strikes Back: Fox Raid Shows Disney's Enduring Force

Netflix Inc.'s rising popularity provoked Walt Disney Co.'s Bob Iger to seize $52 billion of TV and film assets from its rival 21st Century Fox Inc. But the unforeseen megadeal also serves as a reminder that Disney still has at least one big advantage over Netflix: the financial heft and prestige to do whatever it takes to endure an industry upheaval.

Disney agreed Thursday morning to pay Fox shareholders 0.2745 Disney shares for each Fox share. In return, it will gain the 20th Century Fox and Fox Searchlight film studios, Fox's television production, FX and National Geographic networks and Fox's regional sports networks, along with valuable stakes in international assets such as pay-TV provider Sky Plc and a bump to majority ownership of Hulu. This is subject to regulatory approval, of course, which we know will be a long road as the Justice Department fights AT&T Inc.'s effort to consolidate power in the media and communications space with its Time Warner Inc. takeover.