Justice Clears Disney-Capital Cities-ABC Deal
WASHINGTON (AP) _ The Justice Department’s antitrust division today approved Walt Disney Co.’s $19 billion purchase of Capital Cities/ABC Inc. after Disney agreed to sell Los Angeles television station KCAL-TV.
Justice was investigation whether Disney’s ownership of both KCAL-TV and KABC-TV in Los Angeles would reduce competition and raise advertising prices in Los Angeles.
``Disney’s commitment to sell KCAL-TV ensures that the deal will not harm competition in the sale of advertising in Los Angeles, and makes further action by the division unnecessary at this time,″ Anne K. Bingaman, assistant attorney general for antitrust, said in a statement.
The agreement with the Justice Department is a major step, but the Disney-Capital Cities deal still requires approval from the Federal Communications Commission.
Disney agreed to the appointment of a trustee to accomplish the sale of KCAL-TV. It has nine months to reach a definitive agreement for the sale, according to a Justice statement.