Earlier few days, we have encountered bidding war between two Media giants of the industry as both of them wants to purchase TV assets of 21st Century Fox and run as a separate entity which keeps ownership of Fox television station group. In the last report, Disney bids $38 per share which makes 71.3 billion and a deal to buy Disney share in return that ultimately produces a 50/50 proration situation, in response Fox board asked time to think.
According to some recent reports, Disney won antitrust approval from Justice Department to purchase 21st Fox assets in $71 billion, the transaction placed on Wednesday and eventually gives Disney a leap over the Rival firm Comcast to acquire the major portion of Rupert Murdoch’s TV and film region.
Delrahim ther assistant attorney general and head of the Justice Department’s Antitrust Division said, “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, 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,” according to variety.
On Wednesday, the Justice Department filed a complaint in federal court pursuing to stop Disney from purchasing 22 regional sports network but ended up announcing a settlement in favor of Disney divestments. Whereas Disney agreed on Justice department terms and will sell Fox’s 22 regional sports networks to solve the issue that the Disney acquiring deal would raise the prices in the local market for cable and sports programs.
“We are pleased that the DOJ concluded that, with the exception of the proposed acquisition of the Fox Sports Regional Networks, the transaction will not harm competition, and that we were able to resolve the limited potential concerns to position us to move forward with this exciting opportunity that will enable us to create even more compelling consumer experiences,” said Disney.
But still, the settlement agreement has to pass from a pro forma step which is to be approved by a Federal judge. It has now more consideration points to make its case of Fox shareholders plus the regulatory approval will make things more prejudice for Disney.