Disney Agrees to Sell Fox Sports in Brazil to Win Approval of 21st Century Fox Takeover

Traders work at the post where Walt Disney Co. stock is traded on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 14, 2017. REUTERS/Brendan McDermid

Walt Disney Co accepted a demand by Brazil’s antitrust regulator CADE that it sell local rights for the Fox Sports channel to win approval of its takeover of Twenty-First Century Fox Inc, the regulator said on Wednesday.

CADE said in a statement that Disney agreed to give the buyer of the sports channel the option to use the Fox brand at no additional cost, noting that the timeframe for the deal is confidential.

According to the agreement signed between Disney and CADE, the divestiture will include all Fox Sports transmission rights in Brazil as well as contracts with cable TV operators, real estate and transmission equipment.

Key employees would also have to be transferred, CADE added.

The Brazilian regulator also said it had discussed antitrust consequences of the deal with regulators in Mexico and Chile.

Reporting by Tatiana Bautzer; editing by Dan Grebler and G Crosse

Source: Reuters