More Problems Complicate Disney-Fox DealLamar Green - June 29, 2018 13 0 COMMENTS
Last week, Comingsoon.net reported that Disney had signed an amended acquisition agreement with 21st Century Fox to acquire the company for $71.3 billion.
Originally, Disney’s offer was for just over $52 billion, but an aggressive bid of $65 billion from Comcast forced Disney to up its offer.
The Department of Justice has approved the deal between the two major corporations, provided some conditions are met. The DOJ wants Disney to sell off Fox’s 22 regional sports networks because Disney already owns ESPN. If all those networks were to be under the same roof, it would create a major monopoly in sports broadcasting. Disney agreed to the stipulations, and the expectation is Fox’s sports networks will be sold before the deal becomes official.
Assistant Attorney General Makan Delrahim had the following to say about the decision to make Disney sell off Fox’s 22 regional sports networks:
“American consumers have benefited from head-to-head competition between Disney and Fox’s cable sports programming that ultimately has prevented cable television subscription prices from rising even higher. Today’s settlement will ensure that sports programming competition is preserved in the local markets where Disney and Fox compete for cable and satellite distribution.”