Disney sought regulatory approval to acquire FOX assets, including cable networks, film and television studios, and its 30 percent stake in Hulu. The U.S. Department of Justice conditionally approved the acquisition subject to Disney divesting 22 FOX regional sports networks.
Our team, while part of then Matrix Economics, supported an academic economist to evaluate the competitive implications of Disney’s proposed acquisition. A key concern was that Disney would have owned a substantial percentage of revenues associated with cable sports programming. The work was presented to the DOJ and undertaken on behalf of the American Cable Association.