Can Disney Still Get What It Wanted from Fox?


Dec. 4 2020, Updated 10:53 a.m. ET

Disney forced to drop certain Fox assets

Regulators have reshaped the Disney-Fox deal to the point that investors may be asking whether Walt Disney (DIS) is still getting what it wanted when it bought most of 21st Century Fox’s (FOX) assets for $71.3 billion last year. In the United States and Brazil, regulators demanded that Disney drop Fox’s regional sports channels before approving the deal, and Disney complied. Disney was also required to divest certain assets in Europe, but in China, the deal sailed through without conditions.

Article continues below advertisement

Disney forced to hike bid for Fox

While disposing of some Fox assets may help Disney raise funds to pay down its debt and reinvest in growth, the forced divestiture may prevent Disney from selling the assets at the prices it wants and leave it with less than it had expected from the Fox assets.

Disney is already paying more than it had planned for the Fox assets—it had originally agreed to purchase Fox assets for $52.4 billion, but the price jumped to $71.3 billion after Comcast (CMCSA) showed up with a rival bid for Fox’s assets.

In the first quarter of its fiscal 2019 (ended in December), Disney’s revenue fell slightly YoY (year-over-year) to $15.3 billion. In the same period, Comcast’s and Charter Communications’ (CHTR) revenue grew 26.1% and 5.9% YoY, respectively, while Dish Network’s (DISH) fell 5.1% YoY.


More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.