"The deal will also substantially expand our worldwide reach, allowing us to offer world-class storytelling and innovative distribution platforms to more consumers in key markets around the world".
Shares of Fox, which have surged 35 percent since talk of the deal surfaced in early November, were slightly lower in premarket trading.
The deal allows Disney to expand its content, especially for streaming services.
Oswald the Lucky Rabbit came home to Disney after Iger agreed to turnover a legendary character of its own by releasing Al Michaels from his ABC Sports contract so he could move to NBC.
Shareholders in 21st Century Fox will now receive 0.27 Disney shares for each share they hold, giving Murdoch and his family a holing of less than five per cent in the enlarged family.
If successful, this deal would mean that the Fox film studio, FX network and a portion of British Sky Plc TV amongst other assets would become Disney property.More news: Philadelphia Eagles QB Carson Wentz out with knee injury
Fox has owned the "X-Men" and "Fantastic Four" series and produced multiple film iterations of the characters.
As expected, Disney has announced its intention to buy up 21st Century Fox, further expanding its already huge media empire.
Whether control over all that content could give Disney the power to harm rivals will be a key question for a Justice Department fresh off a legal challenge to AT&T Inc.'s planned takeover of Time Warner Inc., a case based on concerns about the phone giant's ownership of the media company's programming. He said: "The acquisition of this stellar collection of businesses from 21st Century Fox reflects the increasing consumer demand for a rich diversity of entertainment experiences that are more compelling, accessible and convenient than ever before". Prior to the deal going through, 21st Century Fox will transfer the Fox Broadcasting network and stations, Fox News Channel, Fox Business Network, FS1, FS2 and Big Ten Network into a newly listed company that will be spun off to its shareholders.
The "new" Fox is meant to grow and focus on live news and sports, Fox said.
It is still not known if Murdoch, who is now the Executive Co-Chairman at 21st Century Fox, will maintain a role inside the company or if he would take some time off to celebrate being newly Wednesday for the fourth time to supermodel wife Jerry Hall.
Mr lger continue as chairman and chief executive of Disney until the end of 2021. He has already postponed his retirement from Disney three times.