United Kingdom clears 21st Century Fox to buy satellite pay-TV giant Sky

Roman Schwartz
July 13, 2018

The move launched a bidding war between Disney and Comcast, with the former company updating their initial offer to $71.3 billion split evenly between cash and stock.

Comcast turned up the heat overnight with a new £14.75-a-share proposal, up from £12.50 previously.

The US cable group gatecrashed Murdoch's attempt to buy the 61 per cent of Sky his group did not already own in February, when Fox was still firmly stuck in the regulatory process. And should Comcast be successful in its bid to overtake Disney and buy Fox, Disney could in turn buy those RSN's and fold them into the ESPN brand.

Another wrench has been thrown in the ongoing saga of the Disney Fox deal.

Present in 23 million homes across Europe, Sky is a prized asset, with a slate of top sport and original drama content.

"Comcast has long admired Sky and believes it is an outstanding company and a great fit with Comcast".

The Sky logo is seen on outside of an entrance to offices and studios in west London, Britain June 29, 2017.

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A Fox shareholder has filed a lawsuit over Disney's pending acquisition of most of 21st Century Fox's assets, alleging that shareholders have been given misleading or incomplete information before their vote on July 27, according to The Hollywood Reporter. Sky's shares closed at £15.01 on Tuesday, suggesting shareholders think the battle is not over. Is this the deal that inspires more or scares off others?

The Government has already separately cleared Comcast's bid for Sky.

The fight for Sky is part of a wider contest between Comcast and Walt Disney Co. for the bulk of Murdoch's media empire, as each tries to scale up to take on streaming competitors Netflix Inc. and Amazon.com Inc.

One hedge fund manager with a stake in Sky welcomed that pledge as a sign that Disney backed Fox in the battle. Comcast just raised its offer for European pay-tv giant Sky.

KitGuru Says: No matter who ends up getting their hands on Fox's assets, the loss of competition from such a large player in the market is sure to be felt across the entertainment industry.

Sky's independent directors accepted the latest Fox offer.

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