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Murdoch's Fox increases Sky bid to £24.5bn in takeover battle | Murdoch's Fox increases Sky bid to £24.5bn in takeover battle |
(35 minutes later) | |
Rupert Murdoch's 21st Century Fox has increased its offer for UK broadcaster Sky to £24.5bn, topping a previous offer from rival bidder Comcast. | Rupert Murdoch's 21st Century Fox has increased its offer for UK broadcaster Sky to £24.5bn, topping a previous offer from rival bidder Comcast. |
US media giant Comcast made a £22bn offer for Sky in February, trumping a previous offer from Fox, which valued Sky at £18.5bn. | US media giant Comcast made a £22bn offer for Sky in February, trumping a previous offer from Fox, which valued Sky at £18.5bn. |
Fox is expecting to get regulatory approval from Britain this week for the deal. | Fox is expecting to get regulatory approval from Britain this week for the deal. |
Fox said Sky's independent committee had agreed the deal. | Fox said Sky's independent committee had agreed the deal. |
Fox has been trying to get approval from UK regulators since 2016 to buy the 61% of Sky it does not own already. | |
The bid was held up by fears that it could give Mr Murdoch too much power over UK media. | The bid was held up by fears that it could give Mr Murdoch too much power over UK media. |
Fox has been trying to address those concerns through concessions, including selling Sky News to Disney once the deal is complete. | Fox has been trying to address those concerns through concessions, including selling Sky News to Disney once the deal is complete. |
In June, the then Culture Secretary, Matt Hancock, said the Fox deal could go ahead if it sold Sky News, with certain provisos. | In June, the then Culture Secretary, Matt Hancock, said the Fox deal could go ahead if it sold Sky News, with certain provisos. |
At the time, Mr Hancock said he needed to be confident that the deal ensured the long-term financial viability of the channel. | At the time, Mr Hancock said he needed to be confident that the deal ensured the long-term financial viability of the channel. |
Sky News would need to continue to be a major UK-based news broadcaster. It would also need to be able to make editorial decisions independent from the control of the Murdochs. | Sky News would need to continue to be a major UK-based news broadcaster. It would also need to be able to make editorial decisions independent from the control of the Murdochs. |
Mr Hancock said in June that there would be no public interest concerns with a Comcast takeover of Sky. | Mr Hancock said in June that there would be no public interest concerns with a Comcast takeover of Sky. |
Battles in the media industry | |
Analysis: BBC business editor Simon Jack | Analysis: BBC business editor Simon Jack |
The new bid for Sky is a whopping 80% more than the market thought Sky was worth before the bidding war started. | |
A source close to the deal said: "It's absolutely unbelievable - they are way overpaying." | A source close to the deal said: "It's absolutely unbelievable - they are way overpaying." |
And I'm told it's not done yet. "I think Comcast want it more - and will be back." | And I'm told it's not done yet. "I think Comcast want it more - and will be back." |
The big question may be for Disney, which, if the price goes any higher, may start to think that the company they want to buy - Fox - is overpaying for Sky. | |
As one source at Sky told me: "If you can figure out what the strategy is here, then let me know." | As one source at Sky told me: "If you can figure out what the strategy is here, then let me know." |
Here goes: the approval of the merger between AT&T and HBO's owner Time Warner in the US started an all-out global media arms between old giants and new pretenders such as Netflix. | |
In that arms race for content and distribution, price is secondary to scale. And Sky - with its 20 million subscribers in Germany, Italy, UK, Spain and Ireland - hands the victor European distribution at scale on a single (increasingly expensive) plate. | |
The skirmish for control of Sky is being fought in the shadow of an even bigger battle - a struggle for control of prized entertainment assets owned by Fox, including its stake in Sky. | |
Disney and Comcast are locked in a battle for those businesses which include movie studios, cable channels, National Geographic and a 30% stake in video website Hulu, as well as Indian network Star. | |
In June, Disney raised its offer for those assets to $71.3bn (£54bn) in cash and shares. | |
Under the deal, Fox would keep Fox Sports, Fox News and Fox Television Stations and make them into a new company called "New Fox". | |
Established media companies like Disney are looking for deals that would help them meet the challenge of fast-growing rivals including Netflix and Amazon. |