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Apple buying Shazam; Disney inks $52.4B deal to buy Fox assets

S&P Global Market Intelligence provides a wrap-up of U.S. companies' media and communications deal announcements and completions from Dec. 11 to Dec. 15.

* E-commerce giant eBay Inc. signed an agreement to buy Toronto-based e-commerce research platform Terapeak, to expand the eBay Seller Hub interface. EBay will integrate Terapeak's functionalities into Seller Hub, which allows users to manage their inventory and orders, access performance insights and target appropriate markets. Terapeak uses supply, demand and pricing information to help online businesses know what and when to sell, and for how much. Terapeak President and CEO Kevin North said the move will help eBay's merchants scale their businesses. The transaction is expected to close before year-end.

* T-Mobile US Inc. is acquiring internet TV company Layer3 TV Inc. to create a new TV service that will launch in 2018. The service will use Layer3's platform which integrates TV, streaming online video content and social media. In a press release Dec. 13, T-Mobile said the new service will leverage its nationwide retail presence, sales and marketing programs, and customer care organizations. Layer3 launched its broadband-based service in Washington, D.C., earlier this year. The service is also available in cities such as Los Angeles, Chicago and Denver, offering 4G content with 100 Mbps symmetrical fiber broadband speeds.

* Apple Inc. confirmed a deal to acquire music recognition app Shazam, Variety reported Dec. 11, citing statements from both companies. In a statement, the iPhone maker said Apple Music and Shazam are a natural fit, and the company looks forward to combining with Shazam. Recent reports pegged the deal price to be around $400 million.

* Oracle Corp. said it has entered into a binding Scheme Implementation Deed with Aconex Ltd for A$7.80 per share in cash. The transaction is valued at an estimated A$1.6 billion, net of Aconex cash. The board of directors of Aconex have recommended the transaction, which is expected to close in the first half of 2018, subject to Aconex shareholder and regulatory approvals and other customary closing conditions. The Oracle and Aconex deal will provide an end-to-end offering for project management and delivery that allows customers to plan, build, and operate construction projects.

* Equinix Inc. agreed to a nearly A$1.04 billion, or approximately US$792 million, deal to buy Australian data center business Metronode (Nsw) Pty Ltd. from Ontario Teachers' Pension Plan, a move that the California-based company hopes will fortify its foothold in the Asia-Pacific region and fuel its global expansion. The deal, scheduled to close in the first half of 2018, will increase Equinix's data center footprint in Australia to 15, with the addition of roughly 20,000 square meters of gross colocation space. It also adds more than 80,000 square meters of land, 90% of which is owned, to the global portfolio of Equinix. Metronode generated approximately A$60 million of revenues in the 12 months ending Sept. 30, with a margin profile accretive to the Equinix Asia-Pacific business, according to a release.

* In a transaction that significantly changes the media landscape, Walt Disney Co. has reached a deal to buy an array of 21st Century Fox Inc.'s international and domestic assets. After talks broke down a month ago, Disney and 21st Century Fox have now put the finishing touches on a deal for approximately $52.4 billion in stock that includes 21st Century Fox's movie and TV studios, the FX Networks and National Geographic Partners and its 22 regional sports networks. Additionally, the agreement, announced on Dec. 14, gives Disney Fox's stake and a controlling interest in streaming service Hulu LLC. Internationally, the transaction bolsters Disney's presence abroad, via Fox Networks International, with more than 350 channels in 170 countries; Fox's fast-growing Star India; and its 39% ownership of satellite giant Sky plc across Europe. Prior to the close of the transaction, it is anticipated that 21st Century Fox will seek to complete its planned acquisition of the 61% of Sky it doesn't already own. Immediately prior to the acquisition, 21st Century Fox will separate the Fox Broadcasting network and stations, FOX News Channel (US), FOX Business Network (US), FOX Sports 1 (US), FOX Sports 2 (US) and Big Ten Network into a newly listed company that will be spun off to its shareholders. Under the terms of the agreement, shareholders of 21st Century Fox will receive 0.2745 Disney share for each 21st Century Fox share they hold. The exchange ratio was set based on a 30-day volume weighted average price of Disney stock. Disney will also assume about $13.7 billion of net debt of 21st Century Fox. The acquisition price implies a total equity value of about $52.4 billion and a total transaction value of about $66.1 billion for the business to be acquired by Disney, which includes consolidated assets along with a number of equity investments.