A commitment by Fox to divest Sky News to Walt Disney satisfied concerns about U.K. media plurality.GETTY IMAGES
The U.K. government "cleared two bids for Sky" from Rupert Murdoch's 21st Century Fox and Comcast, "setting up a bidding war for the pan-European media company," according to Matthew Garrahan of the FINANCIAL TIMES. U.K. Culture Secretary Matt Hancock "waved the Comcast bid through," saying that there were no broadcasting standards or public interest grounds on which to intervene. On the Fox deal, he agreed that a commitment by Fox to sell Sky News to Walt Disney was "sufficient to alleviate concerns" about U.K. media plurality. Discussions will now begin between officials at the Department of Culture, Media & Sport and Fox, Sky and Disney "to finalise the details with a view to agreeing an acceptable form of the remedy," Hancock told parliament. Fox's bid of £10.75 ($14.41) a share values Sky -- which was founded by Murdoch -- at about £18.5B ($24.8B). Its offer has been scrutinized by two regulators, media watchdog Ofcom and the Competition & Markets Authority, for 16 months. Comcast made a competing offer for Sky this year at £12.50 ($16.76) a share, which valued the company at about £22B ($29.5B) (FT, 6/5). In London, Jim Waterson reported Disney has already offered to buy Sky News "in order to clear competition concerns as part of its broader bid for many of Murdoch's media assets." Hancock suggested this offer is "likely to meet his standards" and would allow Murdoch's bid to be approved later this month, meaning a bidding war for Sky is "on the horizon." 21st Century Fox said that Hancock's statement meant it is "confident that we will reach a final decision clearing our transaction." The deal left Sky News employees "nervous about their futures" but in an email to staff, Sky News Head John Ryley noted that both bids contained "commitments to guarantee the funding and editorial independence of Sky News" (GUARDIAN, 6/5). Also in London, Christopher Williams reported Hancock said that the undertakings "must ensure that Sky news is financially viable for at least 10 years and independent from outside editorial influence" (TELEGRAPH, 6/5).
