IFT cancels Fox Sports sale in Mexico for three months

The Federal Telecommunications Institute (IFT) granted The Walt Disney Company and Twenty-First Century Fox a three-month suspension of the divestment period to sell Fox Sports in Mexico. The selling order is one of the requirements imposed on March 11th, 2019 to authorize the Disney-Fox merger.

The period granted for the process expires on May 1st this year, after an extension that the Mexican regulator had granted to both companies. ‘Taking into consideration the situation caused by the Covid-19 pandemic (Coronavirus), the companies requested the Institute to cancel the disinvestment period. In response, the IFT decided to grant a suspension that goes from March 19th to June 19th, 2020, so the disincorporation period will resume on June 20th, 2020 and will end on August 3rd this year’, announced the IFT officially.

Based on the information provided by Disney and Fox and the independent auditor, the IFT determined that the suspension ‘is effective, since it is impossible for Disney and Fox, at this time, to continue themselves with the disinvestment process , without this being a fact or an act attributable to them, as it derives from the situation caused by the Covid-19 pandemic’.

In addition, in case that, after the three-month suspension period has ended, the fact or cause for which the IFT authorized it remains, Disney and Fox may request the Institute to extend it.