DoJ Clears Disney Acquisition Of 21st Century Fox

(RTTNews) - Walt Disney Co. (DIS) has agreed to sell off 21st Century Fox's 22 regional sports networks in order to win Justice Department's approval of its acquisition of major 21st Century Fox assets.

The DoJ on Wednesday said it will require Walt Disney to divest 22 Regional Sports Networks as a condition of its $71.3 billion acquisition of certain assets from Twenty-First Century Fox, Inc.

"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."

Disney agreed to divest the 22 regional sports network rather than continue with the Antitrust Division's ongoing merger investigation.

Department has determined that the divestitures would resolve antitrust concerns arising from Disney's acquisition of certain assets from Fox.

The settlement with DoJ must first be approved by a federal judge and Fox's shareholders also have to vote in favor of the deal.

"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," Disney said in a statement.

Last December, Disney reached a deal to buy most of Fox's TV and movie assets for $28 per share, however, the company earlier this month sweetened the offer earlier to $38 per share, after Comcast tried to hijack the deal with a better offer of $35 per share.