Tags: fox | sports | networks | disney

Fox: No Plans to Buy Sports Networks Disney May Sell

21st fox logo on tablet screen
(Mohamed Ahmed Soliman | Dreamstime)

Friday, 11 January 2019 09:26 AM

The new-model Fox Corp. will not be a bidder in the auction of the 22 regional sports networks that Disney is set to buy from 21st Century Fox.

Fox confirmed in a Securities and Exchange Commission filing Friday that it "does not intend" to make a run at any of the RSNs about to change hands.

The Disney-21st Century Fox transaction is expected to close by early March. Disney has to sell the local cablers to comply with the terms of the agreement it reached last year with the Justice Department clearing the way for the $71.3 billion transaction.

There'd been speculation that the new Fox set to emerge after the Disney deal is done would try to buy back those 22 outlets.

The RSNs were valued at about $20 billion in the terms of the Disney-21st Century Fox transaction. It's still unclear how robust the market is for Disney's mandated sale process. RSNs have become a lightning rod in the pay-TV arena because they command high per subscriber fees, driving up MVPD bills. But long-term there's also concern about whether RSNs will be able to hang on to local sports rights as deep-pocketed digital giants barrel into the premium video business.

"Fox confirms that it does not intend to bid for any of the Fox regional sports networks that Disney (or any entity operating on its behalf) may sell as required by the consent decree with the U.S. Department of Justice," 21st Century Fox said in the filing.

The filing also reported that 21st Century Fox "intends to commence preliminary discussions with investors in connection with a potential financing" of the $8.3 billion special dividend that 21st Century Fox will pay to the new Fox entity as called for in the terms of the Disney deal.

© 2019 Thomson/Reuters. All rights reserved.

   
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Twenty-First Century Fox said on Friday it does not plan to bid for any of the regional sports networks that Walt Disney Co may need to sell to win U.S. Justice Department's approval for its purchase of Fox's film and TV assets.
fox, sports, networks, disney
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2019-26-11
Friday, 11 January 2019 09:26 AM
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