Disney has committed to pay a massive “breakup fee” to 21st Century Fox if the $52.4 billion acquisition of Fox assets is blocked by federal regulators. Variety reports that Disney agreed to pay $2.5 billion.
“The agreement unveiled Thursday also provides for a breakup fee of $1.52 billion payable by either side if Disney or Fox pulls out of the transaction for reasons other than regulatory problems,” Variety reports.
The report adds: “The hefty fee tied to the regulatory review process reflects the industry’s uncertainty about the Justice Department’s approach to media consolidation now that it is suing to block the AT&T-Time Warner merger.”
Your inflammatory headline is clearly nullified in the body of the story. What gives?
I am praying fervently that this deal will fall through eventually, as I think Fox and Disney are waaaaaaay too big of companies by themselves, also it will limit what we can watch as well. So I am praying. That in the 12-18 months of Approval-Seeking it will be blocked by the government.