Pallone Seeks Hearing on Disney/Fox; Trump Praises Deal; Analyst Notes Such Involvement
House Commerce Committee ranking member Frank Pallone, D-N.J., urged committee Republican leaders Friday to hold a hearing on Disney’s proposed $66.1 billion deal to buy 21st Century Fox assets (see 1712140003 and 1712140038). “We have a responsibility to understand the…
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potential effect of this merger on consumers and the media marketplace,” Pallone said in a letter to House Commerce Chairman Greg Walden, R-Ore. The committee’s “oversight into these proposed mergers has been lacking. Despite repeated calls from Democratic members, this Committee has not had a single hearing to look at the changing video marketplace in more than four years.” It's “been over two years since the Committee held a hearing on the current state of ownership in the broadcast industry,” Pallone said, asking to “make it a priority in 2018 to seriously examine all of the issues related to the video marketplace" including Disney/Fox. House Commerce didn’t comment. The White House weighing in positively on Disney/Fox points to politics "playing a central role in anti-trust decision-making," BTIG's Rich Greenfield wrote investors Friday, saying President Donald Trump's differing views on CNN and Fox News are reflected in the administration's views of the proposed AT&T/Time Warner and Disney/Fox. The analyst said Disney/Fox poses "obvious and far more threatening consumer harm" in the form of higher consumer prices, fatter video bundles and reduced upstart virtual MVPD and subscription VOD competition. He said those issues exist in AT&T/TW, but "they are far less certain." Wells Fargo's Marci Ryvicker wrote investors that Disney/Fox should close in 12 to 18 months, pending regulatory review, as others have said (see 1712140038). "And Trump seems to be a fan," she said. The White House on Thursday said Trump congratulated Fox Executive Chairman Rupert Murdoch on the proposed deal and believes it "could be a great thing for jobs." DOJ didn't comment.