Disney has agreed to divest the local rights for the Fox Sports channel in Brazil to a buyer at no additional costs.
In a significant development, Brazil’s antitrust regulator, CADE stated, Walt Disney Co has accepted its demand to sell the local rights for the Fox Sports channel, so as to gain approval for the takeover of Twenty-First Century Fox Inc.
In a statement, CADE said Disney has agreed to give the buyer of the sports channel the option to use the Fox brand at no additional cost; the timeframe for the deal is confidential.
According to the agreement between CADE and Disney, the divestiture will include all Fox Sports transmission rights in Brazil as well as contracts with cable TV operators, transmission equipment and real estate.
CADE went on to add, key employees would also have to be transferred.
CADE also mentioned, it has discussed antitrust consequences of the deal with its counterparts in Chile and Mexico.