Disney-Fox Merger Takes Another Step Toward Completion with Brazil
That’s
right, it’s still happening! The Disney-Fox Merger is a fairly long
process, voted by shareholders into action last
summer with an overwhelming majority.
The deal for Disney to acquire 21st Century Fox is costing $71.3
BILLION dollars. There are a handful of regulatory hoops for Disney
to jump through to make this happen. The Department of Justice
reached a settlement with the Disney. Disney may acquire Fox,
“provided that Fox’s collection of regional sports networks is
divested”.
The
deal has taken another step forward in
an agreement in Brazil’s antitrust agency. Brazil is the largest
media market is South America. Brazilian regulators felt that
Disney’s ownership of ESPN and Fox Sports gave Disney too much
power over sports rights and all related, so as a part of the
agreement Disney will be selling off the Fox Sports cable channel.
The deadline for that sale remains confidential. The deal is designed
to keep the market for sports networks balanced and keeping the same
number that are already available.
Approvals
from Brazil and Mexico supposedly are the last two obstacles Disney
has to cross to completely absorb 21st Century Fox’s assets.
Variety
speculates that Mexico may share the same concern as Brazil about
Disney’s ownership over sports networks. If that is true, Disney
may need to let go of ESPN to seal the deal and put the globe into
the Mouse’s family friendly embrace.
Variety
also reports that the Brazilian regulators have said in their
statement that they have conferred with their Mexican counterparts in
evaluating the transaction, and we may see an approval from Mexico
within just days!
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