The Walt Disney Company could buy UK's Sky News

The Walt Disney Company could buy UK's Sky News

The Walt Disney Company could buy UK's Sky News

Disney has offered to buy UK-based Sky News in a move created to enable the channel's owner, European pay TV operator Sky, to be acquired by Mouse House target 21st Century Fox.

In a filing submitted to the Competition and Markets Authority published Tuesday, Fox said Disney could now buy Sky News.

The second is simply a legal separation and comprehensive ringfencing of Sky News.

Liberum analysts argued that the deal should allow Fox to hurdle the obstacles that the CMA had put in the way of the Sky takeover. It proposed itself that Sky News could be either spun off or divested.

If Disney buys Sky News, it would clear the way for 21st Century Fox to complete the Sky takeover. The US company, which has previously tried to allay competition concerns by offering to close down Sky News, added that it would fund the news operator for 15 years rather than a decade as first proposed. Fox now owns more than a third of Sky's shares and has bid $16.5 billion for the remaining stake in the company. Twenty-First Century offered this even though the record before the CMA shows that, over the course of almost 30 years as Sky's founding shareholder, neither Twenty-First Century, nor the Murdoch Family Trust, have ever sought to influence the editorial direction of Sky News. It added: "As the regulatory process remains ongoing, shareholders are advised to take no action at this stage".

"The big thing we still don't know is what Comcast are going to do about their potential offer for Sky, which in the short term at least has created a market in Sky shares which is far above the price that 21st Century Fox has offered", he explained.

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Fox warned the CMA against accepting "a number of unsupported and fanciful assertions" by "a group of politicians", including Ed Miliband and Sir Vince Cable, who opposed to the deal.

Fox said its new concessions went beyond the steps that Britain's media regulator Ofcom said would mitigate concerns about Murdoch's influence. (NASDAQ:CMCSA) unveiled a possible £22.1bn (US$31bn) all-cash offer to buy Sky. Sky News would be transferred to this new company, which would have its own management and independent board.

"In the wider picture, Disney are more focused on the entertainment side of the business whereas Fox are more news focused", he told City A.M.

The watchdog investigated the proposed deal over media plurality and commitment to broadcasting standards following a referral from the secretary of state for digital, culture, media and sport.

"We think Sky is an outstanding company", said Comcast CEO Brian Roberts in a statement at the time.

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