Jakarta -Walt Disney Co. wins US approval to buy 21st Century Fox Inc. assets for $ 71.3 billion on condition that Disney has to sell 22 of Fox’s regional sports networks it owns.
It was delivered by the US Department of Justice on Wednesday (27/06/2018), thus providing a way for Disney to get rid of Comcast Corp.’s offer. over 21st Century Fox.
The Fox film franchise and TV broadcasting has long been the subject of a bidding war between Disney and Comcast. Both want to expand their entertainment business to compete with Netflix Inc. and Amazon.com Inc. which is growing very fast.
However, Fox’s deal is not included for Fox News, Fox Business, or Fox Sports broadcast networks.
If later Disney wins over Comcast, Disney’s portfolio will become even more unparalleled. The reason, the combined business will also bring together popular world characters such as Mickey Mouse, Luke Skywalker, and Marvel heroes with X-Men, Avatar, and The Shimpsons.
Currently, Disney has ABC, Pixar, Marvel Studios, and the production of “Star Wars” Lucasfilm, as well as a playground. Meanwhile, Fox’s acquired Disney assets consist of cable TV groups, among them FX Networks, National Geographic and 300 more other international networks and Fox shares in Hulu.
Disney, which also owns the ESPN sports network, has agreed to release all of Fox’s regional sports networks, such as YES Network which airs the New York Yankees baseball game around the New York metropolitan area.
Together, Fox’s national sports network has about 61 million subscribers and has the right to broadcast 44 live games from 91 professional sports teams in the US in 3-4 major sports leagues.
“[Without the divestment], the proposed acquisition will eliminate the head-to-head competition that is now taking place between Disney and Fox and which ultimately can increase the price of cable sports programs,” the US Justice Department said Thursday ( 28/6/2018).
The Disney deal with the government can beat Comcast, who has not yet responded to Disney’s offer of Fox. Comcast, which last week offered US $ 65 billion, declined to comment.
Meanwhile, Disney expressed his gratitude to the government’s approval issued by the Department of Justice, and “is ready to attract more consumer experience”.
The analyst has antitrust concerns about Comcast’s offer, which will add Fox movies and TV studios to NBC Universal. Comcast CEO Brian Roberts has declared Comcast ready to offer the same conditions as Disney and will continue to fight, even if necessary in court.
As according to sources who are reluctant to be identified, the sports network offered by Disney can attract a variety of offers from technology companies and media who want to plunge into the sporting show. Despite the fact that the industry’s growth has declined in recent years as many spectators decide to break the traditional cable network.