Fox Says Committed To Sky Bid After Regulator Ruling On Disney

Fox Says Committed To Sky Bid After Regulator Ruling On Disney

If that deal doesn't close before Disney's $52.4 billion deal for Fox, then Disney is required to make a mandatory offer for Sky at a price of £10.75 per share.

Twenty-First Century Fox Inc said on Thursday it remains committed to its cash offer for Sky PLC, first announced over a year ago at the end of 2016, as it noted the decision by the UK Takeover Panel that may require Walt Disney Co to bid for all of Sky. It also said that Disney was interested in acquiring Sky News. Those assets include Fox's 39 percent stake in Sky.

In the UK on Thursday 12 April, a takeover panel ruled that Disney will have to buy up pay TV provider Sky UK - if Fox's takeover of the unit stalls. "The basis for this ruling is that, in accordance with paragraph (b) of Note 8 on Rule 9.1, the Executive considers that securing control of Sky might reasonably be considered to be a significant goal of Disney's acquiring control of Fox", the independent body noted.

Earlier this month, 21st Century Fox said the Walt Disney Company is interested in buying United Kingdom -based Sky News regardless of whether its $52.4 billion deal for certain Fox assets goes through.

Following the statement from the Takeover Panel, Sky advised its shareholders to take no action.

Fox proposed create a independent and separately run company for Sky News.

Although the deal was approved by European authorities, it was derailed by Britain's competition watchdog, who said in January that it is not in the public interest as it would give the global media mogul Rupert Murdoch and his family "too much control" over the country's media.

The new regulatory requirement adds yet another wrinkle to an already complicated acquisition process that involves Disney, Fox, Sky and Comcast.

The UK's Competition and Markets Authority is now reviewing Fox's bid for Sky and is due to report back to British culture secretary Matt Hancock by May 1, who will then have 30 days to decide whether or not to approve the deal.

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