Disney gets US antitrust approval to buy up Fox assets in blow to Comcast
Comcast still has time to respond. Fox cancelled a shareholder meeting to vote on the Disney deal that had been planned for July 10
Walt Disney has won US antitrust approval for its US$71 billion purchase of 21st Century Fox’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.
Fox accepts new Disney bid of US$71 billion, putting Comcast in tough spot
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 US$65 billion bid. The US$38-a-share price is about US$10 a share higher than what Disney offered in December – and US$$3 above Comcast’s bid.
Comcast still has time to respond. Fox cancelled a shareholder meeting to vote on the Disney deal that had been planned for July 10.
Comcast is now 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 on Wednesday. Wall Street expects the cable giant to come back with a counter bid.
“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, the head of the department’s antitrust division.
