Disney's Acquisition of Fox - DOJ's Antitrust Complaint and Consent Judgment over Sports Networks

[jcb]

In case anyone is interested, the DOJ has formally posted its complaint and proposed consent judgment explaining why Disney must divest Fox's regional sports networks (RSN) due to antitrust (Clayton Act) concerns. This isn't new but the link below gives the DOJ's official reasons for requiring Disney to divest the networks. Disney has agreed to do so.

The proposed acquisition would combine two of the country’s most valuable cable sports properties— Disney’s ESPN franchise of networks and Fox’s portfolio of twenty-two RSNs. Cable sports television networks compete to be carried in the programming packages that distributors,such as cable companies (e.g., Charter Communications and Comcast), direct broadcast satellite services (e.g., DISH Network and DirecTV), fiber optic networks services (e.g., Verizon’s Fios and CenturyLink’s Prism TV), and online distributors of linear cable programming (e.g., Hulu Live and DISH’s Sling TV) (hereinafter, collectively referred to as ‘‘MVPDs’’) offer to their subscribers. Consequently, Disney’s proposed acquisition of Fox’s portfolio of RSNs would end the head- to-head competition between them and likely would result in higher prices for cable sports programming in each of the Designated Market Areas (‘‘DMAs’’) in which Disney and Fox compete.
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This loss of competition likely would result in increased MVPD licensing fees in each DMA Market and because licensing fees typically are passed onto consumers, higher subscription fees for MVPD customers.​

https://www.gpo.gov/fdsys/pkg/FR-2018-08-15/pdf/2018-17521.pdf

 

[SorcererHeidi]

Jack, his legal expertise, and ability to make it simple for those like me.

 

[OKW Lover]

Thanks for posting this Jack. Obviously Disney agrees since they are divesting those networks as a condition for the merger.

 

[jcb]

I just wonder what will happen if Comcast makes an offer for them.