For Disney to Buy Much of 21st Century Fox, DOJ Would Require 22 RSNs be Sold

For Disney's $71.3 billion deal to buy much of 21st Century Fox, DOJ said it would require the would-be acquirer to divest 22 regional sports networks. In a settlement agreed to by Disney, the Antitrust Division filed suit Wednesday in the U.S. District Court for the Southern District of New York, Justice announced. "To streamline agency clearance, Disney agreed to divest the 22 RSNs rather than continue with the Antitrust Division’s ongoing merger investigation." Smaller cable operators and others recently said they were concerned about such RSN concentration.

Comcast also has been trying to buy Fox assets, though some said that deal could face bigger antitrust hurdles. Comcast and 21st Century Fox didn't comment immediately. Disney recently boosted its bid for the Fox assets.

"Without the required divestitures, the proposed acquisition would likely result in higher prices for cable sports programming licensed to" MVPDs "in each of the local markets that the RSNs serve," Justice said. “American consumers have benefited 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 Antitrust Division Chief Makan Delrahim.

The department's consent decree with Disney and 21st Century Fox allowing the deal would give the acquirer at least 90 days from closing to complete the RSN sale, "with the possibility that the DOJ can grant extensions of time up to another 90 days," Disney said. "The decree is subject to the normal court approval process."