Could a Disney-Fox Deal Get By Regulators?
Rumors had been bubbling for weeks that Walt Disney Co. (NYSE: DIS) could take over Twenty-First Century Fox (NASDAQ: FOX) (NASDAQ: FOXA), and this morning they came true. Disney said it would acquire nearly all of Fox's entertainment assets in a $52.4 billion, all-stock deal. The combination, if approved, would send shockwaves through the media industry, shaking up both streamers like Netflix (NASDAQ: NFLX) and Disney's on-air rivals like CBS (NYSE: CBS), NBC parent Comcast (NASDAQ: CMCSA), and Time Warner (NYSE: TWX).
According to the terms, Disney would take over all of Fox's assets except for Fox News, the FS1 FS2 and Big Ten sports network, Fox Business Network and the Fox broadcasting network, which includes local TV affiliates, which form a newly listed company spun off to its shareholders.
In other words, Disney, which already owns ESPN and movie studios that include its namesake, LucasFilm, Pixar, and Marvel, would acquire the 20th Century Fox movie and television studios as well as Fox Searchlight and Fox 2000; 22 regional cable sports networks; Fox's stake in Hulu, which would give Disney 60% control of the streamer; cable networks including FX, FXX and National Geographic; and stakes in two international TV giants, Sky of Britain and Star of India.
Source: Fool.com
