Walt Disney said today it would buy Fox Family Worldwide, a set of children's cable-television channels, from Mr Rupert Murdoch's News Corp. and Saban Entertainment for about $3 billion.
The move strengthens Disney's position in family TV programming and gives News Corp. much-needed cash as it pursues talks to buy General Motors's DirecTV satellite television service.
Disney - which owns the ABC Television network, Disney channel, plus several other channels such as ESPN - will also assume $2.1 billion in debt for the assets that include the Fox Family channel, which has 81 million subscribers, and a library of assets that include the "Mighty Morphin' Power Rangers," a Disney spokeswoman said.
The deal is expected to close in three to four months.
Businesses being bought include the Fox Family Channel, which reaches about 81 million cable and satellite television subscribers throughout the US. It will be renamed ABC Family.
"This acquisition strengthens our company's worldwide business of family entertainment," said Disney chairman and chief executive Mr Michael Eisner in a statement. "The Family Channel and Fox Kids are unique assets that are particularly well suited to be a part of The Walt Disney Company."
The deal also includes a 76 per cent ownership stake in Fox Kids Europe, which reaches over 24 million subscribers across Europe and will be recast under the Disney brand.