Posted in: Movies | Tagged: Amy Klobucher, David Cicilline, disney, donald trump, fox

Democrats Want to Challenge the Disney/Fox Deal

Published Sat, 16 Dec 2017 11:13:33 -0600

The question of whether Disney's $52.4 billion deal to purchase most of the assets of 20th Century Fox will be good or bad for consumers has been on everyone's mind this week. We know who the deal will be bad for: people who like a diverse array of offerings in movies and television, as well as all of humanity as the concept of the public domain continues to be dismantled by the ever-more-powerful Disney. We know who the deal will be good for: Rupert Murdoch, Ike Perlmutter, billionaire investors in both companies, and President Donald Trump. But putting all those less important matters aside, will it be good for movie and television consumers? Will we really enjoy that X-Men/Marvel crossover?

That's the most important question of all, and one that Senate and House Democrats have set out to answer. In the Senate, that task falls to Senator Amy Klobuchar, Ranking Member on the Subcommittee on Antitrust, Competition Policy and Consumer Rights. In a press release, Klobuchar issued a statement on the merger:

This week we have seen the announcement of another industry-changing merger, which would have major implications in television, film, and media. Yesterday, Disney announced that it is acquiring 21st Century Fox's film and television studios, cable entertainment networks, and international television businesses. I'm concerned about the impact of this transaction on American consumers.

As the Ranking Member of the Senate Judiciary Subcommittee on Antitrust, I have asked Senator Lee, who has worked closely with me in this area in the past, and Chairman Grassley to schedule a hearing on the proposed merger so that there is appropriate oversight over the antitrust review process.

Meanwhile, in the House of Representatives, Congressman David N. Cicilline, the top-ranking Democrat on the House Antitrust Subcommittee, raised similar concerns, as expressed in a press release:

Another day, another mega-merger. Disney's proposed purchase of 21st Century Fox threatens to put control of TV, movie, and news content into the hands of a single media giant.

If it's approved, this merger could allow Disney to limit what consumers can watch and increase their cable bills. Disney will gain more than 300 channels, 22 regional sports networks, control over Hulu, and a significant portion of Roku.

America is in a Monopoly Moment. We need more competition than before, not less, to create an economy that has more choices and innovation, lower prices, and better jobs. The House Antitrust Subcommittee should look at this proposal very closely.

Hearings are common when gigantic mergers take place, and this one in particular seems like it could transform the industry. However, the current expectation is that the deal will go through, while a similarly large proposed merger between AT&T and Time Warner is set to be challenged by the Justice Department. Whether the differing expectations have anything to do with the fact that President Donald Trump has several close friends and powerful allies that stand to benefit from the Fox deal is another one of those questions that we feel like we should know the answer to, but Google tells us we do not.

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