Cable Price Increase Causes Snag in Fox and Disney Merger

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While the Fox and Disney merger is expected to be completed by January 1, 2019, it seems like the highly-anticipated and watched deal may have hit a small snag along the way. According to Mexican newspaper El Universal, Disney would own about 30% of the sports content, which would affect cable providers. Warner Brothers and Universal would own around 15.12% and 11.45% respectively.

According to the Post, the RSN (regional sports network) has been on a sharp decline.

“The RSN business is not a growth business, but a declining business,” one RSN expert told the Post. “There are a lot of subscriber defections [along with the rest of cable] and the RSNs do not own the digital rights.”

It would be a price increase in Mexico that is stalling the merger, as television prices would rise to about 20%, according to El Universal.

Disney CEO Bob Iger commented on this issue:

“Very good question,” Iger said. “We’re going to take the best people from both companies and that’s who’s gonna basically be on the playing field for us. Meaning, talent will prevail. Fox Searchlight is a great example. You look at FX, NatGeo.”

Still, the merger is expected to be completed on January 1, 2019.

Source: CB

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