Fox Might Sell Sky News To Walt Disney
According to reports, Media mogul Rupert Murdoch has increased his pressure on Britain to approve his $14.5 billion offer for Sky by proposing to sell or separate Sky News. On Tuesday, Twenty First Century Fox said that Sky News can possibly be sold to Walt Disney Co. The company also said that if not sold to Walt Disney then it can also become a separate legal business within the Sky group.
In December 2016, Fox agreed to acquire 61 percent stake of Sky. The deal however couldn’t materialize as it has been delayed by the British regulators and the government. Fox already agreed and confirmed that Sky’s 24 Hour news service would be kept independent under Murdoch’s leadership. Critics and some prominent politicians are skeptical about this as Murdoch has a lot of influence in the news business as he owns Times and Sun newspapers. Meanwhile, Comcast Corp the American cable giant, has tried to crash the deal of Fox and Sky. In February this year, the cable giant said that it will offer 12.50 pounds per share to acquire sky. Fox had offered 10.75 pounds per share for Sky. Sky deal is currently under regulatory delays. Fox on the other hand has agreed to sell off a number of its assets including its stake in Sky to Walt Disney.
Moreover, Fox has also said that it can also possibly isolate Sky News from the Sky group. Fox wants to make Sky news a separate entity with a 15 years funding. Fox also confirmed that Walt Disney is keen to acquire Sky News. Offers from Fox and Comcast resulted in an increased share price of Sky News. Analysts believe that Fox will not let go of Sky news and will make a counter bid to match Comcast’s offer.
On Tuesday, in other news, it was confirmed that Sky italia has finally settled its long dispute with Mediaset. This will make Sky more available in the Italian market. High profile UK legislators have asked for a complete ban on Murdoch from buying Sky News.