9 Implications Of Disney Potentially Buying Fox
2. Regulators Block The Deal
Even with Fox's news and sports division left out of this potential agreement, there's a good chance antitrust regulators will have concerns about a deal of this magnitude and its impact on the entertainment landscape.
In recent years, US politicians have pointed out the danger of monopolies with the power to hike prices and harm consumers, while economists have flagged up pitfalls like stagnating wages, low labour-force participation and stifled business creation.
Whether the Fox-Disney union that's being touted would technically qualify as a monopoly is debatable, but Disney’s Buena Vista studio and Fox together accounted for more than 40% of US film-studio revenue last year.
It isn't a stretch to imagine their combined might resulting in an entity that eventually claims 50% of the domestic movie business, and it's figures like these that will lead to intense scrutiny from the Justice Department.
Even if Fox and Disney do end up agreeing on brass tacks, that will be just one of many hurdles they will need to overcome to get a deal like this over the line.