UK government approves 21st Century Fox bid for Sky

Thursday 12 July 2018 | 16:42 CET | News

The UK government has formally approved 21 Century Fox's plans to acquire pay-TV group Sky. In a statement, new Culture Secretary Jeremy Wright said that the takeover can proceed as long as Sky News is sold to Disney to alleviate public interest concerns about media plurality.

This follows a statement by former Culture Secretary Matt Hancock in June agreeing with the findings of the Competition and Markets Authority (CMA). A consultation was then opened on undertakings offered by 21st Century Fox and new undertakings offered by Disney. After receiving five responses to the consultation, Hancock agreed a clarification to Disney's undertakings and changes to the associated brand licensing agreement. In addition, the Secretary of State will consult with the CMA in relation to these undertakings.

The new Secretary of State said it was now a matter for Sky shareholders to decide whether to accept the bid from 21st Century Fox, which increased its offer on 11 July to outbid US rival Comcast. This resulted in Comcast increasing its offer to GBP 14.75 per share, valuing Sky at GBP 26 billion. This compares to 21CF's increased offer of GBP 14 per share and Comcast's previous offer of GBP 12.50 per share. 

In response, Sky welcomed the written statement from the Secretary of State regarding 21CF's offer for Sky. It said that 21CF's offer for the company has now cleared its outstanding regulatory pre-conditions, and follows the satisfaction by Comcast on 15 June of its outstanding regulatory pre-conditions. This means that both offers can now be put formally to Sky shareholders. 

In a separate statement, 21CF noted the Secretary of State's announcement approving the acquisition. It also said that it has waived the element of pre-condition concerning approval by the Secretary of State which required the expiry of the time limit within which an application to the Competition Appeal Tribunal (CAT) can be made. 

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Categories: Broadcast & Satellite
Companies: 21st Century Fox / Comcast / Disney / Sky
Countries: Europe / United Kingdom
::: add a comment

Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.


Sky agrees to higher takeover bid from Comcast

Published 12 Jul 2018 09:06 CET | United Kingdom
Comcast has raised its offer for European pay-TV provider Sky, just beating an improved bid from Sky's largest shareholder 21st ...

21st Century Fox increases offer for Sky by 30%, beating Comcast bid

Published 11 Jul 2018 10:46 CET | United Kingdom
21st Century Fox has increased its offer for Sky as it looks to outbid US rival Comcast for the pay-TV group. Fox and the Sky ...

Takeover Panel urged to set higher minimum share price for Sky

Published 04 Jul 2018 10:15 CET | United Kingdom
The UK Takeover Panel is being urged to set a higher minimum price for Sky's shares as Comcast and Disney battle to acquire 21st ...

Disney agrees higher bid with cash for 21st Century Fox

Published 20 Jun 2018 16:45 CET | United States
21st Century Fox has agreed a new takeover offer from Disney, adding a cash element to the originally all-stock deal and beating ...

Sky senior staff could get GBP 500,000 bonuses from company sale

Published 18 Jun 2018 11:37 CET | United Kingdom
Senior management at entertainment group Sky could share a pay-out of at least GBP 350 million after the value of its shares was ...

Comcast makes USD 65 bln cash bid for 21st Century Fox

Published 13 Jun 2018 23:49 CET | United States
Comcast has made its official bid for most of the assets of 21st Century Fox. The company said it will give USD 35 per share in ...

UK gives conditional approval to Sky's takeover by Fox, says Comcast's bid presents no problems

Published 05 Jun 2018 15:43 CET | United Kingdom
In an official statement to Parliament, UK Culture Secretary Matt Hancock said he would not block the takeover of Sky, owner of ...

Comcast confirms plans for 21st Century Fox offer, outbidding Disney

Published 23 May 2018 14:14 CET | United States
Comcast has confirmed it's preparing a bid for much of 21st Century Fox that would beat Disney's earlier offer of USD 52.4 ...

Comcast makes GBP 22 billion formal bid for Sky

Published 25 Apr 2018 13:07 CET | United Kingdom
Comcast has announced a formal takeover offer for UK broadcaster Sky at GBP 12.50 in cash per share, valuing the company at GBP ...

Sky shows steady growth in sales, profit in Q3, customer growth slows

Published 19 Apr 2018 08:46 CET | Europe
Sky reported steady growth in revenues and profit for the fiscal third quarter to March, while customer growth slowed at the ...

UK takeover panel says Disney must make offer for Sky

Published 12 Apr 2018 14:20 CET | United Kingdom
The UK takeover panel has ruled that Disney must make a mandatory offer for Sky after Disney completes the takeover of Fox and ...