Disney / Fox marriage to cause massive layoffs – analysts

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LOS ANGELES (LA TIMES) Walt Disney Co.’s imminent purchase of much of 21st Century Fox may be a boon to investors as the company moves to bulk up on assets that will help it compete in a rapidly changing media industry. But the deal also could bring substantial job cuts in Southern California.
 
As of Wednesday afternoon, the companies were sewing up a plan for Disney to acquire much of Rupert Murdoch’s media empire for about $60 billion. Any agreement is sure to face a lengthy regulatory review, meaning the combination would not close for about a year.
 
The merger could result in hundreds of layoffs for Fox employees in the coming years because the companies have many overlapping departments and Disney would look to wring savings, analysts said.
Prominent media analyst Michael Nathanson said in a recent research report that a deal could result in an estimated $2.5 billion in synergies.