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The Justice Department on Wednesday approved the $ 71 billion Walt Disney Company's offer for 21st Century Fox's entertainment badets, potentially complicating Comcast's desire to make a competing bid for the Empire's empire. Rupert Murdoch's entertainment.
Government approval has been filed in federal court on condition that Disney, which already owns ESPN, sells all of Fox's 22 regional sports networks, which include valuable channels like the YES network of the Yankees.
"Today's regulation will help maintain competition from sports programs in local markets where Disney and Fox compete for cable and satellite distribution," said division chief Makan Delrahim. Antitrust Department of Justice.
In December, Disney and Fox agreed to a $ 52.4 billion stock purchase agreement. Then, two weeks ago, Comcast made an offer for Fox's badets worth about $ 65 billion. This has prompted Disney to come back with its richer offer, which is a mix of money and stock.
The cable channels, including FX and National Geographic, the film franchises "Avatar" and "X-Men", as well as a pair of international TV channels are concerned: the European pay-TV operator Sky and Star India. These two networks, which are growing businesses and focus on streaming services, are key attractions for Disney and Comcast.
Fox News, Fox stations and the FS1 sports network are not included in the sale.
Regional sport networks are one of Fox's most valuable activities and are expected to generate more than $ 2 billion in profits this year. The addition of these channels to Disney's portfolio could be considered a stifling competition since Disney also controls ESPN, the leading cable sports channel in the United States. Sports networks could also be problematic for Comcast, which already controls nine regional sports networks.
The Department of Justice has approved the Disney agreement just six months after the announcement of the merger. Transactions of this size typically take a year or more. The relatively fast process contrasts sharply with the acquisition of Time Warner by AT & T, amounting to $ 85.4 billion. took nearly two years to close. The Justice Department filed a lawsuit to block the deal, but lost the case this month after failing to convince a federal judge that the merger would lead to higher cable bills.
As a candidate, Donald J. Trump, who had often criticized CNN, a property of Time Warner, as "false news," promised to stop the merger of AT & T-Time Warner s & # He was elected to the White House.
"We will not approve in my administration because it's too much concentration of power in the hands of too few," he said at the time.
He showed more rosy feelings for the deal between Disney and Fox. "I know the President spoke with Rupert Murdoch earlier today, congratulating him on the agreement," said White House spokeswoman Sarah Huckabee Sanders, said in December.
Disney said in a statement Wednesday that he was "happy that the DOJ has concluded that, with the exception of the Fox Sports Regional Networks acquisition project, the deal will not harm the competition. The company added that she viewed the operation as an "exciting opportunity that will allow us to create even more compelling experiences."
This endorsement reinforces Disney's offering, which is about $ 6 billion more than Comcast's current offer for Fox. Disney General Manager Robert A. Iger is counting on the merger to cement his legacy. He had flirted with a presidential race in 2020 but decided to continue running the company after efforts to plan his succession resulted in the departure of two senior executives.
Comcast CEO Brian L. Roberts also wants to reach an agreement for Fox's business, but the cable giant has been silent since Disney made his latest offer. Comcast declined to comment on Wednesday.
Comcast has been talking to private investors and other media companies about the opportunity of a renewed offer for Fox's badets, the Wall Street Journal reported Wednesday.
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