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Disney-Fox Merger Under Fire in a Key Market

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The 21st Century Fox and Disney merger has hit one major snag due to strict regulations in Mexico. Per analysts, the deal must undergo regulations in Mexico to ensure it affects "pay television companies" and their 30 million subscribers.

According to El Universal, sources close to both Fox and Disney, who continue to operate separately for the time being, have reassured that there will be an increase of 20% in prices by year's end. This increase is expected to mainly affect subscribers of "restricted television," with the expectation being both companies will "transfer most of the costs directly to their customers."

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The merger, which has (thus far) moved ahead as expected in most markets, will see the duo essentially monopolize sports television in Mexico as Statista reports the companies will go on to own 27.9% of the content distribution industry. That's more than Warner Bros., which owns 15.2%, Sony and Columbia with 12.10%, and Universal Pictures' 11.45%. As it stands, the forthcoming merger is currently awaiting approval in multiple Latin American countries, including Brazil and Mexico.

It was originally thought that the merger could close as early as January 2019; however, with the strict regulations needed in both Mexico and Brazil, it would seem the original Summer 2019 deadline is more probable.

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The merger between 21st Century Fox and Disney, which had been rumored for some time, was officially approved in December 2017 following a $71.3 billion deal that will see Disney acquire Fox's television and movie studios with its various respective properties, including regaining the cinematic and television licensing to the X-Men and Fantastic Four. As part of the deal, Disney will also own a majority stake in the streaming service Hulu.

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