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By Jerry Dieter | gmd5385@psu.edu | March 12, 2019
Mexico’s telecommunication regulators announced on Tuesday, March 12, 2019, that they have approved of the Walt Disney Corporation’s acquisition of Twenty-First Century Fox Inc.’s film and television assets. The deal was previously approved by the U.S. Justice Department back in June of 2018, and with the deal valued at $71 billion, this approval by the Mexican government is a major step in the right direction for the Walt Disney Corporation.
Over the past couple of months, Disney executives have traveled to multiple Latin American countries, and Mexico, in order to hammer out approval for their merger. The majority of Latin America followed in the footsteps of the U.S. Justice Department by approving of the merger on the condition that Disney sells off Time Warner’s regional sports networks. Winning Mexico’s consent was then all that was needed to finalize Disney’s nine-month campaign to consolidate. Now that most of the red tape that has halted Disney’s progress has been approved, it is believed that Disney and Twenty-First Century Fox will now finally be able to consolidate in the coming days.
The integration of the two mass media companies will greatly altercate the industry by cementing Disney as the world’s top entertainment company. The deal will give Disney access to all of Twenty-First Century Fox’s film/studio assets, as well as all of its popular franchises (like the Simpsons, Modern family, Alien, etc,). This will prove to be very beneficial to Disney’s upcoming streaming service, Disney+, that will now be able to offer a wide variety of Disney owned content on it.
Disney is ultimately trying to future-proof its empire in an industry that is increasingly getting more and more competitive with the onset of streaming services (like Netflix) producing their own content, and new forms of content being created from the internet. With the approval from the World to consolidate, it looks like the entertainment company plans to stick around awhile longer will prove successful.
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