Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Britain to rule on Murdoch's Sky bid by June 13

Published 01/05/2018, 15:58
© Reuters. FILE PHOTO: The 21st Century Fox logo is displayed on the side of a building in midtown Manhattan in New York
DIS
-
CMCSA
-
BSBAy
-
TFCFA
-

LONDON (Reuters) - The British government will give its verdict on Rupert Murdoch's 18-month pursuit of Sky (L:SKYB) by June 13, potentially paving the way for the mogul's Fox to take on Comcast in the battle for the British TV group.

Twenty-First Century Fox (O:FOXA) agreed a deal to buy the 61 percent of Sky it did not already own in December 2016, but the takeover has been repeatedly held up by politicians and regulators who fear it will give Murdoch too much influence in Britain.

Fox has offered commitments designed to protect the editorial independence of Sky's News division but both sides were stunned in February when U.S. media group Comcast (O:CMCSA) made a rival offer.

Comcast has since made that a formal $31 billion (22.8 billion pound) bid.

"My decision will be on whether the merger operates or may be expected to operate against the public interest, taking into account the specified public interest considerations of media plurality and genuine commitment to broadcasting standards," Secretary of State for Culture and Media Matt Hancock, said in a written ministerial statement.

Fox's bid for Sky has been complicated by its more recent agreement to sell many of its TV and film assets to Walt Disney Co (N:DIS), including its stake in Sky, for $52 billion.

Fox said it had offered a range of undertakings that would fund and protect the editorial independence of Sky News. It said this underscored its "long-standing commitment to the excellence and complete editorial independence of the news service we created 28 years ago.

"These enhanced remedies go above and beyond what Ofcom, the expert independent regulator on UK broadcasting, had stated would mitigate concerns around media plurality. We now look forward to the Secretary of State's decision."

Hancock said he would deliver his final verdict to parliament. He said however that having given his verdict, he would consider any further undertakings that may be made by Fox and offer the industry the chance to give their verdict.

© Reuters. FILE PHOTO: The 21st Century Fox logo is displayed on the side of a building in midtown Manhattan in New York

The Competition and Markets Authority (CMA) has been investigating whether the deal will give Murdoch, who owns the Times and Sun newspapers, too much influence in Britain's news media. It sent its assessment to Hancock on Tuesday, giving him 30 working days to assess the deal.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.