U.S. Department of Justice Clears Disney Acquisition of 21st Century Fox
The Disney buyout of 21st Century Fox has moved one step closer as The Walt Disney Company announced today that the Antitrust Division of the United States Department of Justice has cleared the pending acquisition by Disney of Twenty-First Century Fox, Inc.
This means franchises like Avatar, Predator, Aliens and the Simpsons are close to becoming brands for Disney and the arrival of the X-Men and Fantastic Four in the Marvel Cinematic Universe becoming a reality.
Here are the details:
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 will have at least 90 days from the date of closing the transaction to complete this sale, with the possibility that the DOJ can grant extensions of time up to another 90 days. The decree is subject to the normal court approval process.
The parties have worked diligently since announcing the acquisition last December to provide the DOJ the information that it needed for its investigation of the transaction. 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.
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.
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.
This means Disney’s purchase hasn’t yet become final as the settlement must first be approved by a federal judge, and Fox’s shareholders also have to vote in favor of the deal.
Do you think the deal will go ahead?