Writers Guild of America

Massive Disney-Fox deal expected to get close antitrust scrutiny

Massive Disney-Fox deal expected to get close antitrust scrutiny

Walt Disney Co.’s proposed takeover of 21st Century Fox is likely to raise thorny regulatory concerns at a time when the Justice Department has been putting media mergers under the microscope.

Disney’s $52.4-billion stock deal to acquire key parts of Fox would create an unprecedented entertainment colossus and could trigger antitrust concerns because it would erase one of the six major Hollywood studios and would fortify Disney’s dominance in sports broadcasting.

Indeed, the companies’ agreement calls for Disney to pay a lofty $2.5-billion breakup fee to 21st Century Fox if the merger is blocked by federal regulators on grounds “relating to antitrust laws or communications...

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