Disney Agrees To Pay $2.5 Billion If Government Regulators Block Fox Deal


Sure Disney and 21st Century Fox might have finalized its acquisition agreements today, however, it seems like the company's merger still faces the possibility of a block from government regulators.

If that happens, Variety reports that Disney has agreed that it would pay Fox a $2.5 billion break-up fee. The Mickey Mouse House has also agreed with Fox that they would pay the other $1.2 billion if ever one side decides to pull out of the merger for any other reason than a regulatory block by the government.

Regulatory blocks aren't that uncommon. There have been times when the Justice Department has blocked major corporate mergers because of antitrust reasons. Last year the Justice Department blocked AT&T's acquisition of Time Warner, suing to keep the merger from happening. Sure Marvel fans might be terribly excited over the idea of the X-Men and the Fantastic Four making their way into the Marvel Cinematic Universe, however it media consolidation can become a cause of concern for many – not just fans.

The deal which involves the purchase of Fox's different assets takes 18 months to close with pending regulatory approval by the US government and governments abroad like the European Union. Guess fans just have to wait with their fingers crossed till the two finally seal the deal.

Read: Logan Director Concerned About The Future Of R-Rated Films In The Wake Of Disney Acquisition

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