US: Disney’s ‘mega-merger’ with Fox to face DOJ antitrust probe?

Disney and 21st Century Fox have told investors that the proposed US$66 billion merger is likely to take more than a year to complete, and that it will be necessary to get clearance from government regulators.

Key democrats have expressed concern about the deal putting too much media control into the hands of a single company, and have called for congressional hearings. “I’m concerned about the impact of this transaction on American consumers,” said Sen. Amy Klobuchar, the top Democratic lawmaker on her chamber’s leading antitrust oversight committee.

Though the deal is worth US$53.4 billion in stock, net debt means that the total cost to Disney is around US$66 billion.

Recode says that the Department of Justice (DOJ) is the most likely body to investigate the legality of the deal, though Congress will want to play its own role in raising questions. In these kinds of transactions Congress doesn’t actually have a say. But lawmakers do often probe major mergers anyway, not the least because the DOJ’s own independent investigation happens outside of public view.

Full Content: Recode

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