As Comcast considers making a new offer for 21st Century Fox’s entertainment assets, the cable giant is reportedly making moves to alleviate regulatory concerns by lining up potential buyers for Fox’s regional sports networks.
Reuters on Monday cited people familiar with the matter as saying Comcast is making divestiture preparations now to help reduce Fox’s concerns over antitrust hang-ups to the deal and to improve its chance of trumping Walt Disney Co’s current $71.3 billion cash-and stock deal to purchase the assets.
In late June, the Department of Justice gave a greenlight to the Fox-Disney deal, with a condition that Disney sell off Fox’s 22 RSNs to remove antitrust concerns– a move Disney had already signaled it was prepared to make.
The RSNs could collectively be worth as much as $20 billion, sources told Reuters.
Outside of regulatory hurdles, outside partners could also help from a financial perspective as Comcast readies to make its second offer by the end of the month, according to the news outlet. Comcast made a $65 billion all-cash offer last month before Disney upped its bid for the Fox assets.
Private equity firms including Apollo Global management and Blackstone Group have been in talks with Comcast regarding the sports assets, but a telecom or media company might also be interested in the RSNs, the sources noted.
Eyes will be on Comcast ahead of a scheduled July 27 Fox shareholder meeting, where a vote on the Disney deal is set to take place.