Fox Gets Approval From U.K. To Buy Sky -- WSJ
July 13 2018 - 2:02AM
Dow Jones News
By Kiley Roache
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 13, 2018).
LONDON -- The U.K. government said it won't oppose a bid by
Rupert Murdoch's 21st Century Fox Inc. to consolidate ownership of
Sky PLC, removing the last regulatory hurdle for Fox as it battles
it out with Comcast Corp. for the British broadcaster.
Fox sweetened its offer for Sky on Wednesday, triggering a
higher bid a few hours later from Comcast. Comcast's offer, at
GBP14.75 a share, now values Sky at GBP25.9 billion, or roughly $34
billion -- more than 90% higher than its value before Fox first
approached Sky about a deal more than 18 months ago.
British government approval for the Fox-Sky deal opens the door
for Fox to go higher still. Comcast has previously secured U.K.
approval to proceed with its pursuit of Sky.
Mr. Murdoch's attempt to buy the 61% of Sky that Fox doesn't
already own has been the subject of a long government review.
Regulators forced a number of concessions from Fox, including an
agreement to sell off Sky's news operations to Walt Disney Co.
That was required to ease government concerns 100% ownership of
Sky by Fox would concentrate too much control of British news media
in Mr. Murdoch's hands. He and his family are major shareholders in
both Fox and News Corp, which owns a number of British newspapers.
It also owns The Wall Street Journal. Fox has disputed this, saying
there should be no such worry about media ownership
concentration.
On Thursday, the U.K. culture minister said in a statement he
agreed with a regulatory board's previous finding that Fox's
planned sale of Sky News to Disney, or another buyer, would remedy
those regulatory concerns.
The Sky auction has become a central battlefield in a larger
contest between Comcast and Disney. Disney has agreed to pay $71.3
billion for a number of major Fox assets, including the existing
39.1% share of Sky, besting a rival bid from Comcast. The Wall
Street Journal has reported Comcast is reviewing a range of options
related the wider basket of Fox assets, from dropping out of the
race for Fox to raising its bid.
(END) Dow Jones Newswires
July 13, 2018 02:47 ET (06:47 GMT)
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