This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-44373621
The article has changed 5 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| Sky takeover battle looms after Hancock clears Fox bid | |
| (about 2 hours later) | |
| The UK government has set up a multi-billion-pound bidding war for Sky between Rupert Murdoch's 21st Century Fox and US cable giant Comcast. | The UK government has set up a multi-billion-pound bidding war for Sky between Rupert Murdoch's 21st Century Fox and US cable giant Comcast. |
| Culture Secretary Matt Hancock has cleared Comcast's bid, and said Fox can go ahead if it sells Sky News. | Culture Secretary Matt Hancock has cleared Comcast's bid, and said Fox can go ahead if it sells Sky News. |
| Fox has been chasing approval from UK regulators since 2016 to buy the 61% of Sky it does not already own. | Fox has been chasing approval from UK regulators since 2016 to buy the 61% of Sky it does not already own. |
| The bid was held up by politicians and regulators who feared it could give Mr Murdoch too much power over UK media. | The bid was held up by politicians and regulators who feared it could give Mr Murdoch too much power over UK media. |
| The Murdoch-controlled Fox has been attempting to address those concerns through a series of concessions, including selling Sky News to Disney once the deal is complete. | The Murdoch-controlled Fox has been attempting to address those concerns through a series of concessions, including selling Sky News to Disney once the deal is complete. |
| Separately, Disney has struck a deal to buy Fox's entertainment assets, including its stake in Sky. | Separately, Disney has struck a deal to buy Fox's entertainment assets, including its stake in Sky. |
| However, US media giant Comcast waded into the bidding in February with a £22bn offer for Sky, trumping the offer from Fox, which valued the broadcaster at £18.5bn. | However, US media giant Comcast waded into the bidding in February with a £22bn offer for Sky, trumping the offer from Fox, which valued the broadcaster at £18.5bn. |
| If Comcast wins the battle, it will not be compelled to sell off Sky News. | If Comcast wins the battle, it will not be compelled to sell off Sky News. |
| There will now be further talks between officials at the Culture Department and Fox, Sky and Disney with the aim of finding "an acceptable form of remedy," Mr Hancock said. | There will now be further talks between officials at the Culture Department and Fox, Sky and Disney with the aim of finding "an acceptable form of remedy," Mr Hancock said. |
| Mr Hancock said he needed to be confident that the final undertakings ensured the continuation of Sky News's long-term financial viability, and that it could continue to operate as a major UK-based news provider making independent editorial decisions. | Mr Hancock said he needed to be confident that the final undertakings ensured the continuation of Sky News's long-term financial viability, and that it could continue to operate as a major UK-based news provider making independent editorial decisions. |
| He added that talks would start immediately "so we can all be confident Sky News can be divested in a way that works for the long-term". | He added that talks would start immediately "so we can all be confident Sky News can be divested in a way that works for the long-term". |
| "I am optimistic that we can achieve this goal. However, if we can't agree terms at this point, then I agree with the CMA that the only effective remedy now would be to block the merger altogether. This is not my preferred approach." | "I am optimistic that we can achieve this goal. However, if we can't agree terms at this point, then I agree with the CMA that the only effective remedy now would be to block the merger altogether. This is not my preferred approach." |
| Mr Hancock hopes to publish the result of the consultation in a fortnight. | Mr Hancock hopes to publish the result of the consultation in a fortnight. |
| 'Good starting point' | 'Good starting point' |
| Fox said: "We now look forward to engaging with the Department for Culture, Media and Sport and we are confident that we will reach a final decision clearing our transaction." | |
| Sky said it welcomed the announcement and it noted that Mr Hancock felt that undertakings provided by Fox were a "good starting point to overcome the adverse public interest, effects of the proposed merger that he has identified". | |
| Shadow culture secretary Tom Watson said that the approval of both bids "means that this is not the end of the story". | Shadow culture secretary Tom Watson said that the approval of both bids "means that this is not the end of the story". |
| He said Labour's priority going forward was to "safeguard the future of Sky News" which is a "beacon for independent and rigorous journalism". | He said Labour's priority going forward was to "safeguard the future of Sky News" which is a "beacon for independent and rigorous journalism". |
| "Were the Fox/Disney deal to fail it could leave Sky News isolated from Sky and owned by a foreign company with few news interests in the UK. It's hard to see how that would be in the public interest," he said. | "Were the Fox/Disney deal to fail it could leave Sky News isolated from Sky and owned by a foreign company with few news interests in the UK. It's hard to see how that would be in the public interest," he said. |
| Shares in Sky ended 0.3% higher at £13.54. Comcast's offer values each Sky share at £12.50 - considerably more than Fox's offer of £10.75. |