Disney has "agreed to sell off" 21st Century Fox’s 22 RSNs to "secure Justice Department approval of its acquisition" of major Fox assets, as the DOJ today approved the $71.3B transaction. This gives Disney a "big leg up over rival Comcast in the battle to acquire the major portion of Rupert Murdoch’s TV and film empire." The Justice Department today "filed a complaint in federal court seeking to block Disney from acquiring" the RSNs, and it "announced a settlement agreement with Disney that calls for the divestitures." DOJ officials argued that Disney’s "ownership of the national sports powerhouse ESPN created anti-competitive conflicts if it were to also acquire Fox’ regional channels."
In a statement, Disney said the Justice Department settlement called for the company to have 90 days from the closing of the Fox deal to sell off the RSNs. It is expected that Disney "will seek a third-party buyer rather than structure a new agreement with Fox to take the RSNs out of the Disney sale." The New Fox entity "will house the remaining 21st Century Fox assets that are not part of the Disney sale" (VARIETY.com, 6/27).
