Disney’s offer to operate Sky News to the British authorities will be accepted with a clause that it cannot sell the channel without the UK government’s consent. Walt Disney had agreed to a deal to buy the Sky News network from European TV giant Sky. It commits to boost Sky New’s annual funding to $132 million for 15 years to help 21st Century Fox get the UK approve its bid to take full ownership of Sky, in which it already owns 39 per cent. Moreover, 21st Century Fox had offered new commitments to receive its $15 billion bid for Sky News including a commitment of running Sky News for 15 years—five more than it previously promised.
Under the proposed plans, Sky News would guaranteedly receive funding of £100 million ($132 million) a year. The agreement with Disney and 21st Century Fox was disclosed by the British government on Tuesday and would be set out if Fox’s offer is accepted by Sky. The agreement speaks of Sky’s plan to divest Sky News, and the necessary assurances for the channel’s long-term viability and editorial independence.
In a statement released by Matt Hancock, the British culture secretary, “In my view, these revised undertakings [commitments] meet the criteria that I set out to the house [of Commons] on 5 June and will help to ensure that Sky News remains financially viable over the long term; is able to operate as a major the UK-based news provider; and is able to take its editorial decisions independently, free from any potential outside influence.”
Earlier this month, before Hancock spoke to the parliament, Fox had agreed to convene with the British competition watchdog’s proposed remedies. A consultation opened by Hancock ends on 4 July, that’s when he is expected to make his final decision.
Opposition to the Fox bid remains fierce in the UK Lobby group. The vocal opponent, Avaaz, was in the High Court in London on Tuesday persuading the judge to falsify Ofcom’s decision — Fox and the Murdoch family would be fit and proper owners of all of Sky. If Avaaz is successful, Ofcom will have to mandatory perform its evaluation once again.
However, this is likely just an addition to the account as Comcast and Disney themselves fight to acquire 21st Century Fox, plus Comcast’s own bid to acquire Sky directly. It was last month when Sky’s independent board committee withdrew its support to the Fox deal after Comcast had made a higher offer. Based on the whole scenario Disney seems to be a likable choice over Comcast, even more after Disney’s help to 21st Century Fox over Sky News situation.