The Telecommunications Federal Institute (IFT), which regulates the telecommunications market in Mexico, gave a six month extension for The Walt Disney Company and Twenty-First Century Fox to sell Fox’s sports business in the country.
‘The first six-month period granted for divestiture was from May 1st to November 1st, 2019. With the extension, the new period extends to May 1st, 2020’, the IFT reported in an official statement.
The request to divest the Fox Sports business in Mexico is one of the conditions imposed by the IFT last March 11th, in order to allow Disney to acquire Twenty-First Century Fox assets. As reported by the IFT, the divestiture must take place because, before the merger, both Disney and Fox had significant shares in the pay TV sports market that, together, would have represented about 70%, according to audience data in 2017.
Disney-Fox merger took place last March 20th, in an agreement valued at USD 71.3 billion, after both companies sold their sports TV networks in Mexico and Brazil, as requested by the IFT and the Brazilian Economic Defense Administrative Council (CADE).