Disney's Acquisition of Fox Approved, but Must Sell Off 22 Regional Fox Sports Networks

by

After months of scrutiny in an ongoing antitrust case, the United States Department of Justice today granted The Walt Disney Company approval to acquire 21st Century Fox's entertainment assets for $71.3 billion, on one new condition: Disney must divest 22 regional sports networks owned by Fox to an "acceptable" buyer. Removing these networks from the acquisition "would resolve the competitive harm" that has been previously raised in the antitrust lawsuit, the Department said.


If Disney did acquire Fox and the 22 regional sports networks, the original complaint argued that the proposed acquisition would "likely result" in multichannel video programming distributors paying higher prices for cable sports programming in the designated markets. This would also inflate television subscription prices in the process, the Department pointed out.

Now, Disney has agreed to sell the 22 networks to a buyer that the Justice Department deems "acceptable," rather than continue the ongoing merger investigation. After the acquisition closes, Disney will have 90 days in which to sell all of the designated networks to the buyer, otherwise the court will appoint a trustee to force the sale.

This will ensure a competitive market remains in place in each region, Assistant Attorney General Makan Delrahim explained.

“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.”

The specific regional sports networks in question include the following:

(i) Fox Sports Arizona, (ii) Fox Sports Carolinas, (iii) Fox Sports Detroit, (iv) Fox Sports Florida, (v) Fox Sports Indiana, (vi) Fox Sports Kansas City, (vii) Fox Sports Midwest, (viii) Fox Sports New Orleans, (ix) Fox Sports North, (x) Fox Sports Ohio, (xi) SportsTime Ohio, (xii) Fox Sports Oklahoma, (xiii) Fox Sports San Diego, (xiv) Fox Sports South, (xv) Fox Sports Southeast, (xvi) Fox Sports Southwest, (xvii) Fox Sports Sun, (xviii) Fox Sports Tennessee, (xix) Fox Sports West, (xx) Prime Ticket, (xxi) Fox Sports Wisconsin, and (xxii) the YES Network.

Disney is now believed to have surpassed the last major hurdle in the deal and should be nearing the end of the acquisition process, although regulatory approvals from other countries are still required. Competitive offers could also still appear, potentially from Comcast, although Fox has remained vocal about its preference for Disney to win its entertainment assets.

As outlined in the original announcement last December, these assets include Twentieth Century Fox Film and Television Studios and Fox-related cable and international TV businesses. Movie assets that would become Disney-owned include Avatar, X-Men, Fantastic Four, and Deadpool, and TV shows include The Simpsons, This Is Us, and The Americans. Disney would also get Fox's 30 percent stake in Hulu and become a majority owner of the streaming service.

Tags: Disney, Fox

Top Rated Comments

(View all)
Avatar
30 months ago
Cool. So we can have a legit Fantastic 4 and a more consistent X-Men!
Score: 6 Votes (Like | Disagree)
Avatar
30 months ago

because I want to see an xmen + avengers movie haha.

X-men vs Avengers
Score: 4 Votes (Like | Disagree)
Avatar
30 months ago

Interesting. So Comcast is out of the game or can still "mix the water"?

God, let’s hope Crapcast doesn’t get FOX Sports regionals.
Score: 2 Votes (Like | Disagree)
Avatar
30 months ago
I hate monopolies but I'm pretty stoked about the MCU coming back together. I'm not even sure if this qualifies as a monopoly as entertainment is a bit different. At least Sony was smart enough to let them use Spiderman and share characters. I'd prefer Disney to own that too but whatever. I'm curious whether Disney will recast most, if not all of the X-Men characters.
Score: 2 Votes (Like | Disagree)
Avatar
30 months ago
Interesting news... but what is there about it that relates to Apple in any way? How is this a MacRumor?
Score: 2 Votes (Like | Disagree)
Avatar
30 months ago
Pleased to no end that Comcrap didn't pony up another $10B - my frickin' internet costs here are steep enough...

Yet another reason to hate the Yankees.

I love the Bronx Bombers, let me count the rings..., er, ways. :p
Score: 1 Votes (Like | Disagree)

Top Stories

Leaker: 'iPhone 12 mini' and iPhone 12 Storage Capacities Start at 64GB, Pro Models at 128GB

Tuesday September 29, 2020 2:31 am PDT by
Rumors suggest Apple's iPhone 12 launch event will be held on October 13, with the more affordable 5.4 and 6.1-inch devices set to ship out ahead of the more expensive 6.1-inch and 6.7-inch Pro devices, and this morning hit-and-miss leaker Jon Prosser has further committed to that date by providing alleged details on Apple's first shipment of finalized iPhone 12 units. Prosser claims the...

Hands-On With iOS 14.2's New Shazam Music Recognition Toggle in Control Center

Monday September 28, 2020 2:35 pm PDT by
Shortly after launching iOS 14, Apple introduced an upcoming iOS 14.2 update, which is now available to developers and public beta testers ahead of a public release that could come at some point in October. Subscribe to the MacRumors YouTube channel for more videos. The iOS 14.2 update mainly focuses on the Control Center, introducing a new Music Recognition toggle that deepens the Shazam...

Top Stories: iOS 14 Feature Tour, 'iPhone 12 mini' Rumors, Apple Watch Band Controversy

Saturday September 26, 2020 6:00 am PDT by
Things started to calm down a bit this week following last week's rush of media event, Apple Watch and iPad launches, and the release of iOS 14 and other operating updates. But that doesn't mean there wasn't still a lot of news, from digging deeper into iOS 14 to more iPhone 12 rumors to the uproar over trying to exchange band sizes on the new Apple Watch. On top of all of that, we heard...

DigiTimes: 12.9-inch Mini-LED iPad Pro Arriving Early 2021, Mini-LED MacBook Coming Later

Tuesday September 29, 2020 4:18 am PDT by
Apple will launch a 12.9-inch mini LED-backlit iPad Pro in early 2021 and a mini LED-backlit MacBook in the second-half of next year, according to DigiTimes. The Taiwan-based industry publication claims Epistar will supply the over-10,000 mini LEDs used in each iPad Pro tablet. Meanwhile, Apple is expected to recruit Osram Opto as another supplier of mini LEDs for use in a new "high-end"...

iPhone 12 May Launch Earlier Than Usual in South Korea

Monday September 28, 2020 5:24 am PDT by
The upcoming iPhone 12 lineup may launch earlier than usual in South Korea, reports The Korea Herald. South Korean telecoms firms speaking to The Korea Herald have said that the iPhone 12 lineup will launch ahead of its usual schedule. Normally, the release of new iPhones in South Korea comes about one month after launch in the United States. Last year, the iPhone 11 arrived in South Korea ...

iOS 14: 'Phoenix 2' Space Shooter Delivers Playable Demo via App Clips

Saturday September 26, 2020 2:08 pm PDT by
One of the new features that arrived in iOS 14 is called App Clips. App Clips is described by Apple to be a "small part of your app" that can be available to users at just the right moment.App Clips focus on finishing one task quickly. An ideal App Clip experience allows users to open and complete a task in seconds. Instead of requiring an App Store download, they can be loaded and run via...

Epic Games Unlikely to Win Injunction in Ongoing Fortnite Battle With Apple, Jury Trial Possible

Monday September 28, 2020 1:14 pm PDT by
The ongoing legal dispute between Apple and Epic Games continued on today, with a preliminary injunction hearing taking place this morning. We're still waiting to hear the judge's official ruling, but it looks like Epic is not going to be granted an injunction to allow Fortnite back into the App Store as the case unfolds. Many of the arguments that lawyers for Apple and Epic Games made were...

iPhone 12 Production Lines at Foxconn's Zhengzhou Factory in China Running '24 Hours a Day'

Tuesday September 29, 2020 3:38 am PDT by
Apple contract manufacturer Foxconn is running its massive Zhengzhou factory in China 24 hours a day to produce the new iPhone 12, according to Chinese media reports. Apple's main iPhone manufacturer in China is said to be cancelling workers' holidays and introducing mandatory overtime with additional bonuses for longer-serving staff, according to information garnered from employees,...

'iPhone 12 mini' Name Reappears in Leaked Apple iPhone 12 Case Stickers

Friday September 25, 2020 1:58 am PDT by
Earlier this week a proven leaker claimed that the iPhone 12 lineup would be named "iPhone 12 mini," "iPhone 12," "iPhone 12 Pro," and "iPhone 12 Pro Max," and today the same nomenclature has appeared again in a photo depicting alleged stickers from unreleased Silicone iPhone cases originating from Apple's international distribution center in Ireland. The photo shows three stickers with the...

Apple Releases iOS 14.0.1 With Fix for Bug That Resets Default Apps After Rebooting

Thursday September 24, 2020 10:12 am PDT by
Apple today released iOS 14.0.1, the first update to the iOS 14 operating system that was released on September 16. Today's update is a bug fix update addressing issues that weren't able to be fixed in the initial iOS 14 launch. The iOS 14.0.1 update is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General > Software Update. ...