Disney Approved for Most of 21st Century Fox Acquisition.June 27, 2018
Just a few weeks ago, the government approved the merger of AT&T and Time Warner. The approval had shaken up the business world to the point others started to supposedly think about acquiring other big-name companies. Prior to the government's approval of the AT&T and Time Warner merger, Disney had its sights on acquiring 21st Century Fox's entertainment branch.
We'll the US Justice Department has officially agreed to allow Disney to purchase the assets of 21st Century Fox that the company and Disney had agreed upon. However, the Justice Department revealed that Disney will have to sell off 22 of Fox's regional sports networks.
Disney's purchase isn't yet final. The settlement must first be approved by a federal judge, and Fox's shareholders also have to vote in favor of the deal. Disney released a short statement revealing that it is pleased to resolve the Justice Department's "limited potential concerns." The company had earlier said in proxy filings that it would sell the sports networks if required by the government.
The government has been reviewing the deal for several months. Disney had reached an official agreement last December to purchase most of Fox's TV and movie assets.
Disney's competitor Comcast, who through in its hats to purchase 21st Century assets, still has a chance to take the deal.
However, Comcast just may have been jerking Disney's chain seeing that they have not said publicly whether it will try to counter again. Comcast did not immediately respond to a request for comment Wednesday.
Wednesday's news comes about two weeks after the Justice Department lost its attempt in court to stop AT&T from buying CNN parent company Time Warner.
Antitrust regulators had challenged that deal because they said it would harm competition and raise prices for consumers.
In the case of Disney, officials said their concerns about the deal would be alleviated as long as Disney sold the regional sports networks.
"American consumers have benefitted from head-to-head competition between Disney and Fox's cable sports programming that ultimately has prevented cable television subscription prices from rising even higher," said Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division. "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."
Disney's acquisition will mean that it is one of the biggest holders of entertainment in the world. Disney owns at least two titan companies that include Marvel and Lucasfilm. Both Marvel has characters like Black Panther, Thor, Hulk, Captain America and the whole MCU, while Lucasfilm has maybe the greatest sci-fi series of all time aka Star Wars. Disney also owns most of its cartoons still and more. it seems like Disney is becoming the entertainment capital of the world currently.
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Reporting: Janice Muller
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