The Walt Disney Company announced that the Antitrust Division of the United States Department of Justice (DOJ) has cleared the pending acquisition by Disney of 21st Century Fox.
The DOJ has entered into a consent decree with Disney and 21st Century Fox that allows the acquisition to proceed while requiring the sale of the Fox Sports Regional Networks.
Under the consent decree, Disney has at least 90 days from the date of closing the transaction to complete this sale. The DOJ may grant extensions of time up to another 90 days, and the decree is subject to the normal court approval process.
Both Disney and 21CF provided the DOJ information needed for the investigation of the transaction.
“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,” says Disney in a statement.
Completion of the transaction is subject to a number of non-United States merger and other regulatory reviews, and other customary closing conditions, as well as approval of shareholders of both companies.
Last week, Disney and Fox announced an amended acquisition agreement pursuant to which Disney will acquire Fox for $38 per share in cash and stock, immediately following the spin-off of the businesses comprising “New Fox” as previously announced.
The Walt Disney Company had officially increased its offer for the purchase of 21st Century Fox, upping its offer to USD 71.3 billion in stock and cash. The new bidding is a drastic increase from the company’s original USD 52.4 billion deal that valued Fox at USD 28 per share.
The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations in four business segments: Media Networks; Studio Entertainment; Parks, Experiences and Consumer Products; and Direct-to-Consumer and International. Disney is a Dow 30 company and had annual revenue of $55.1 billion in its Fiscal Year 2017.