US Congress Asks For Hearings On Disney’s $52 Billion Deal For 21st Century Fox

The top Democrats in the US Congress want to hold hearings on The Walt Disney Company $52 billion offer to buy 21st Century Fox.

People who have knowledge about competition and consumer protection fear that this Disney millionaire deal will only solidify its dominance in entertainment. Giving it huge box office franchises and too much power over sports networks and video streaming services.

Doubts from the Democrats

“I am concerned about the impact of this transaction on American consumers”. Said the Senatore Amy Klobuchar, the top Democratic lawmaker on her chamber’s antitrust oversight committee. Klobuchar has asked the Republican leaders of the Senate Judiciary Committee to hold a hearing. When the offers are of such magnitude his panel and others do.

The Republican leaders have not yet finalized their plans. The counterpart in the Chamber meanwhile, had a similarly fearful thought. ¨Another day, another mega-merger,” Rep. David Cicilline said in a statement last week. “The purchase proposed by Disney of 21st Century Fox threatens to put the control of television, movies and news content in the hands of a single media giant.

What happens if they make the deal?

Although it is still early for the acquisition of 21st Century Fox by Disney. The agreement would mean that Disney would acquire television studios and Fox films. Some the films that would be involved are “Avatar” and “Xmen,”. Fox’s regional sports media and a controlling stake in Hulu is also included. But, even so, Disney would not win Fox News. The network would remain in the hands of its current owner Rupert Murdoch.

“Both parties have told investors that this procedure would take between 12 and 18 months to complete, and they will still have to sell the agreement to government regulators who must review the merger to determine its effects on competition and consumers. Most likely, the Department of Justice is the one to verify this, which a few weeks ago gave a strange twist to sue the companies in a highly successful agreement:: the offer of AT & T by Time Warner.

Audiences will be going on all week

In these types of transactions, Congress isn’t very important but legislators usually investigate important mergers in other ways, largely because the Department of Justice’s own independent investigation happens outside of the public eye. The hearings help with the testimonies of the main executives, they can shape the public opinion about the plans of the companies.