Disney clears hurdle for Fox tie-up with US regulator’s nod
Walt Disney’s proposed mega-deal with 21st Century Fox moved a step closer to reality Wednesday as US regulators conditionally cleared the tie-up which could reshape the media-entertainment landscape.
The US department of justice approved the $71.3 billion deal subject to Disney selling 22 regional sports networks now owned by Fox.
Disney has been in a bidding war with rival Comcast for the key film and television assets being sold by Rupert Murdoch’s 21st Century Fox, including the prized 20th Century Fox studios and other media production units.
However, Disney-Fox is still not a done deal. Comcast, which owns the NBCUniversal group and is the largest US cable operator, was reportedly exploring partnering with another company on a higher bid.
Disney hailed the decision allowing the company “to resolve the limited potential
NEW YORK:
concerns to position us to move forward with this exciting opportunity that will enable us to create even more compelling consumer experiences.”
In reviewing Disney-Fox, the Justice Department said an asset sale was needed because Disney and Fox currently compete to sell cable sports programming in local markets around the United States.
With those divestitures, the deal would have meant higher prices for these distributors, the agency said.
The proposed settlement will be considered by a US federal court for final approval.