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Whoa: Disney to Pay Astronomical ‘Breakup Fee’ if Government Regulators Block the Disney-Fox Deal

Dec 14, 2017  •  Post A Comment

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.”

2 Comments

  1. Your inflammatory headline is clearly nullified in the body of the story. What gives?

  2. 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.

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