Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Rebecca Zisser / Axios

The Walt Disney Co. is expected to announce within the next few days that it will buy the entertainment assets of 21st Century Fox for roughly $60 billion. Included would be Fox's movie studio and television networks like FX and Nat Geo TV.

Why it matters: The deal would give Disney the scale to take on Netflix, but first it will need to convince regulators that it doesn't pose the same sort of monopoly risk as AT&T's proposed purchase of Time Warner.

Strange timing

The Department of Justice recently sued to block a merger between AT&T and Time Warner, with no final decision expected until the end of April at the earliest. There had been some speculation — including from AT&T CEO Randall Stephenson — that the DOJ's action would put Disney's talks with 21st Century Fox on ice. Big mergers are disruptive to a business, and even more so when regulatory approval is in doubt.

The "We're different" argument:

Disney and Fox will argue that their proposed merger has more differences than similarities to AT&T/Time Warner. Key will be Disney and Fox's relative lack of direct-to-consumer distribution capabilities (i.e., they don't have anything like AT&T's DirecTV).

  • Disney wouldn't own any actual pipes, meaning it wouldn't be able to offer free data when consumers use a certain service (aka "zero rate").
  • This argument could become easier to make if the FCC repeals net neutrality rules on Thursday, as expected, thus further empowering telecom giants like AT&T.
The "We can't compete with Netflix" argument

Disney will argue that today's content environment is the most competitive it's ever been, with networks losing market power to tech companies that are dropping billions on original programming. And regulators will have heard it before, because AT&T is making a similar case.

  • Disney and Fox each own 30% of entertainment streaming service Hulu, meaning that a tie-up would give Disney a majority stake. It is certainly a distribution capability, but their thinking looks like this: Hulu < DirecTV + HBO Go.
  • Complicating matters is that Disney has announced plans to build out its own subscription streaming service in 2019. The goal is to scale that service to compete with Netflix, but it also would potentially compete with Hulu.
Across the pond

For Disney, this deal is about competing with Netflix. The motives are a bit less clear for 21st Century Fox, a family-run business that doesn't have the same short-term financial pressures as some other companies.

21st Century Fox is in the process of buying majority ownership of Sky TV, a U.K. based broadcast network, in which Fox already has a minority stake. The U.K.'s competition regulators are currently weighing whether the Murdochs are "fit and proper" to manage the acquisition.

  • Sources suggest that Fox still thinks the Sky TV deal will go through, with or without Disney, despite how long the process has taken.
  • For Disney, Sky would provide greater international reach and yet another over-the-top streaming service.

Go deeper

White House aims to protect workers from extreme heat

Two pear pickers in Hood River, Oregon on August 13, 2021. (Michael Hanson/AFP via Getty Images)

The White House announced a slew of actions Monday, including the start of a rule-making process at the Occupational Safety and Health Administration (OSHA), to protect American workers from extreme heat.

Driving the news: The U.S. just had its hottest summer on record, with triple-digit-temperatures killing hundreds in the Pacific Northwest and exposing outdoor workers to dangerous conditions.

Robert Costa: Gen. Mark Milley "was not going rogue" with China calls

Washington Post journalist Robert Costa on Monday said in an interview with ABC's Good Morning America that Joint Chiefs Chairman Mark Milley "was not going rogue" when told his Chinese counterpart that the U.S. would not launch a surprise attack.

Driving the news: President Biden last week expressed "great confidence" in Milley after excerpts released from Costa's and Bob Woodward's book "Peril" revealed calls where Milley admits he would let China know ahead of time if former President Trump decided to attack.

Delta variant fears curb fall flying

Travelers in the Miami International Airport. Photo: by Joe Raedle/Getty Images

Continued worries about the Delta variant are derailing fall travel plans.

Driving the news: Thanksgiving domestic flight bookings in August were 18% lower this year compared with 2019, according to a new Adobe Digital Economy Index report out Monday morning.