The British Government gives the green light for the takeover of Sky by 21st Century Fox, but it sets two strict conditions: Murdoch's colossus will not only have to sell Sky News, but will have to provide guarantees that, once sold, the latter can go on its way from an entrepreneurial and financial point of view
Good news for Rupert Murdoch who for two years has been waiting for the green light to be able to acquire total control of Sky after the stop imposed in 2016 by the CMA (the British Antitrust), according to which, the purchase of 61% of Sky by of the Murdoch family – which already owns the remaining 39% – would have resulted in a violation of the rules on media plurality given that the same family already heads not only Fox, but also The Sun need The Times, two of the most important British newspapers.
Moving from words to practice, if as promised last April 21th Century Fox to sell to Walt Disney Sky News, the climb can finally begin.
Matt Hancock, the UK Culture Minister has indeed stated that blocking a deal between Sky and Fox "not my preferred approach“, adding that he “agrees with the Cma (the Competition and Markets Authority, ed) according to which to sell Sky News to Disney, as proposed by Fox, or to a suitable alternative buyer, with an agreement for ensure that it is funded for at least 10 years, is likely to be the most appropriate and effective remedy to the public interest concerns that have been identified”.
Be careful though. Because if on the one hand the British government seems to be paving the way for the acquisition, on the other Hancock has declared that he have no intention of blocking the offer launched by US rival, Comcast. What is looming therefore is "a battle to the death", or perhaps it would be better to say to the last billion, for control of the British satellite operator.
Comcast, the largest cable operator in the United States, has offered £22bn – £12,5 per share – for Sky, exceeding Fox's previous offer of £16 per share by 10,75%. In this context, however, the war between the titans becomes even more bitter if we take into consideration that, in December 2017, Disney in turn launched a 52,4 billion dollar offer on Rupert Murdoch's 21st Century Fox, for a range of assets, including Sky.
Despite this, Fox says he is optimistic about reaching a positive agreement with the British authorities. The firm also said Sky is aware of its fiduciary duties and that it is focused on maximizing value for its shareholders.
