Walt Disney Co., has promised to sell off even more assets if needed as a means of winning antitrust approval for its $71 billion bid to purchase entertainment assets from 21st Century Fox.
According to a Thursday SEC filing, spotted by Bloomberg, Disney indicated it’s prepared to divest businesses generating as much as $1 billion in EBITDA. This is up from the $500 million in EBITDA Disney initially promised to divest as part of the deal, and still could include Fox’s regional sports networks if the Justice Department requires it.
This gives even more credence to Disney CEO Bob Iger’s comments that the Disney-Fox deal is headed for speedy regulatory approval.
“We are already six months into the regulatory process and we are confident we have a clear and timely path to approval,” Iger told analysts on Wednesday.
Indeed, the DOJ is reportedly set to approve the deal in as little as two weeks, according to Bloomberg, which cited a person familiar with the matter. The source said Disney has agreed to sell certain assets to tackle competition concerns over the purchase.
Swift U.S. antitrust approval could prove to be a setback to Comcast, which made its own bid for the Fox assets last week, offering a $65 billion all-cash deal. Disney followed up with its $71.3 billion agreement that included a part cash option. Comcast has yet to respond with a counter offer, though is expected to do so. Fox previously turned down Comcast six months ago, opting for Disney mainly due the perception of an easier path to regulatory approval.
The Fox assets on the table include its TV and movie production studios, regional sports networks, cable networks like FX and National Geographic, and stakes in Hulu and Sky.