Walt Disney Co.
wins U.S. antitrust approval for its $71 billion purchase of 21st Century Fox Inc.’s entertainment assets, raising hurdles for a potential rival bid from Comcast Corp.
Walt Disney Co. won U.S. antitrust approval for its $71 billion purchase of 21st Century Fox Inc.’s entertainment assets, raising hurdles for a potential rival bid from Comcast Corp.
Disney agreed to sell Fox’s 22 regional sports networks to resolve the Justice Department’s concerns that the deal would raise prices for cable sports programming in local markets, the department said Wednesday.
The approval is a victory for Disney in its battle with Comcast for one of the media industry’s biggest prizes. Fox last week accepted a sweetened bid from Disney, which upped its offer following Comcast’s competing $65 billion bid. The $38-a-share price is about $10 a share higher than what Disney offered in December — and $3 above Comcast’s bid.
Comcast is mulling its next steps, including possibly teaming up with private equity investors in its pursuit of Fox assets, a person familiar with the situation said Wednesday. Wall Street expects the cable giant to come back with a counterbid.
“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,” said Makan Delrahim, head of the Justice Department’s antitrust division.
If the bidding reaches a high enough level — say $90 billion — Comcast may go to private equity firms or other backers for help, The Wall Street Journal reported earlier. In one scenario, a strategic investor could take on Fox’s U.S. assets — including the 20th Century Fox studio and regional sports networks — and leave Comcast with overseas assets.
Disney must sell the regional sports networks to a buyer acceptable to the U.S. within 90 days of closing on the Fox deal.