Europe Approves Disney’s Fox Purchase

Disney have been given approval by the European Commission for its purchase of 21st Century Fox. However there is a catch, as they will have to sell their interests in factual TV channels in Europe, which include History, H2, Crime & Investigation, Blaze and Lifetime channels. These channels are currently owned by A+E Television Networks, a joint venture between Disney and Hearst. Though Disney will still hold its share in A+E outside of Europe.

The EU competition regulator said in a statement that Disney had committed to divest its interests in channels including History and Lifetime in the European Economic Area (EEA) to avoid harming competition following its purchase from Fox.

“The decision is conditional on full compliance with commitments offered by Disney,” the Commission said.

European antitrust authorities found no competition issues in terms of the production and distribution of movies, or licensing of film and TV shows.

Disney have already got approval from the U.S. Justice Department, but they have to sell Fox’s 22 regional sports networks. The only last hurdle is the Australian government. The whole deal is expected to be completed in early 2019.

My Take: While Disney having to sell more channels isn’t great from the companies point of view, I would considered these major channels, especially with the focus on the upcoming Streaming Platform. The other good factor of these recent rulings means Disney is having to reduce its initial investment in Fox, with the sale of the 22 Regional Sports Channels, A+E Channels in Europe and its 39% stake of Sky.