Disney is buying most of Rupert Murdoch’s 21st Century Fox for $52.4 billion

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From left, Lachlan Murdoch, Rupert Murdoch and James Murdoch arrive at St Bride's Church for the celebration ceremony of the wedding of Rupert Murdoch and Jerry Hall in London, Saturday, March 5, 2016. (Photo by Joel Ryan/Invision/AP)

Disney is buying 21st Century Fox in a deal that will reshape the media industry.

The $52.4 billion all-stock deal will combine two of the biggest players in Hollywood.

In addition to 21st Century Fox’s movie studio and regional sports networks, Disney is buying cable channels FX and National Geographic. Disney will also get Fox’s stakes in Hulu and European pay-TV provider Sky (SKYAY).

Prior to the deal closing, Rupert Murdoch’s 21st Century Fox (FOX) will separate the Fox broadcasting network, Fox News Channel, Fox Business Network, and some national sports networks into a new company that will be spun off to its shareholders.

The sale to Disney (DIS) represents a remarkable turn in the career of the octogenarian mogul, who is cashing out after building a major media empire.

Disney is adding even more prime entertainment assets to its portfolio as it battles upstart streaming services that have undercut the traditional cable subscription model.

Disney, which counts ESPN as part of its network, has suffered as consumers switch off their TVs and spend more hours watching Netflix (NFLX).

Bob Iger is likely to retire and will remain as chairman and CEO of Disney through 2021.