Did Disney just close the deal to acquire Fox? – The crazy Motley

The ongoing drama about who will acquire Twenty-First Century Fox (NASDAQ: FOXA) (NASDAQ: FOX) might have reached a turning point on Wednesday. First Claimant Walt Disney (NYSE: DIS) announced that the United States Department of Justice (DOJ) has authorized its proposed merger with Fox. The only condition would be the sale of Fox's 22 regional sports networks for the transaction to be completed.

The company spent months getting regulatory approval, which Bob Iger, Disney's CEO, said last week: "We've been in the regulatory process for six months and we're confident. Earlier comments by Makan Delrahim, head of the antitrust division of the Ministry of Justice, indicated that approval was likely. "They had good advice and surgically cut a transaction that could be feasible," he said.

With one of the biggest obstacles lurking behind, has Disney just concluded the deal?

Source: Getty Images

19659011] The comings and goings between Disney and Comcast ( NASDAQ: CMCSA) The other potential purchaser of Fox, has been played in council halls and in the press, with rumors about the fact that Comcast

The speed of l '39; Department of Justice approval has surprised some observers because agreements of this type can usually take a year or more to obtain authorization. The Comcast approval process would probably be more complex and would involve a higher degree of scrutiny, especially in light of the company's history with the DOJ.

At the end of last year, seven years after the closing of NBC Universal's purchase by Comcast, a senator requested a review of certain conditions imposed on the deal and is expected to expire in September. These provisions prohibited Comcast from retaining its content from online, cable and satellite competitors. A number of complaints have been filed against Comcast by smaller competitors, and concerns have also been raised recently due to the reversal of network neutrality and the effect this could have on the market. competitive landscape.

Is another offer expected?

It seems that Comcast is working to put in place additional financing – in partnership with other companies or private investors – that it would need if it decided to make a counter-offer. The company is seeking to raise up to $ 90 billion to support any future offer.

Disney initially announced its intention to acquire Fox at the end of last year, as part of a transaction valued at $ 52 billion. Rumors had been circulating for months that many companies, including Disney, Comcast and Verizon had expressed interest in acquiring Fox's assets. After Disney's first bid, it appeared that Comcast had made a higher, unofficial offer that Fox promptly declined due to antitrust concerns.

In mid-June, Comcast made a new offer of $ 65 billion favorable court decision that allowed AT & T to acquire Time Warner. The case has been closely monitored in the media industry, with the aim of assessing the regulatory landscape, and the result has given Comcast the hope of obtaining similar approval .

Disney responded by increasing its offer to $ 71.3 billion. , which was immediately accepted by Fox.

Bob Iger, Disney CEO, left, and Rupert Murdoch, Fox president. Image Source: Disney

This is not over until it's over

It's said that Comcast is exploring all of its options, which could include a higher bid, or get away from the case completely. Since other countries require additional regulatory approvals and Fox shareholders have not yet voted for the Disney deal, Comcast is in no hurry to make a decision.

Yet having crossed one of the most important regulatory hurdles and being Fox's favorite suitor seems to be giving Disney the upper hand. This is not over yet, but this latest development places Disney closer to the finish line.

Danny Vena owns Walt Disney shares and has been using Walt Disney since January 2019. The Motley Fool owns shares and recommends Walt Disney. The Motley Fool owns shares of Verizon Communications. The Fool Motley has a disclosure policy.