CMA publishes latest Fox remedies for Sky bid

CMA publishes latest Fox remedies for Sky bid

CMA publishes latest Fox remedies for Sky bid

Rupert Murdoch's 21st Century Fox has come up with two proposals it thinks will alleviate a United Kingdom regulator's concern about the company's bid to purchase European broadcaster Sky.

Since opponents have suggested that a United Kingdom -based news channel is not under fit and proper owner that is 21st Century Fox, Sky News has become an essential part of the takeover deal bid.

"21st Century Fox's proposed remedies on Sky News should be enough to overcome the CMA concerns on news plurality over Fox's bid for Sky", said one analyst in a first reaction.

The UK's competition authority, the CMA, on Tuesday issued a new set of proposals from 21st Century Fox, which has been trying for months to give assurances to the British authorities, anxious by the U.S. giant's hand on an important part of the information sector.

Walt Disney all set to acquire Sky PLC's news channel, this deal could help Fox consolidate its ownership of the European pay-TV operator.

Sky also expressed in a separate statement its confidence that the proposals will tackle the regulator's fears, saying: "Sky believes that both of these remedy proposals comprehensively address any plurality concerns the CMA may have, and would guarantee the long term future of Sky News and its ongoing editorial independence". Fox in December 2016 offered to buy the rest of Sky that it doesn't own yet. The Murdoch family already own News UK, the owner of the Times and the Sun.

"We have worked diligently with the CMA throughout its extensive review. These enhanced remedies went above and beyond what Ofcom, the expert, independent regulator on United Kingdom broadcasting, had stated would mitigate concerns around media plurality", Fox said in a statement.

Fox warned the CMA against accepting "a number of unsupported and fanciful assertions" by "a group of politicians", including Ed Miliband and Sir Vince Cable, who opposed to the deal.
However, this offer is now competing with a proposal from the USA cable operator Comcast who put on the table in late February 12.50 pounds per share to take possession of Sky.

Fox added that it would not seek to influence the editorial choices made by Sky News bosses.

Fox's statement on Tuesday added: "We will continue to work with the regulator, and then the Secretary of State at the appropriate time, and leave open the possibility to pursue all of our legal options if necessary".

"More importantly, we think the news and today's comments from Sky point to a revised bid from Fox/Disney to trump Comcast's 1250p bid", they said.

Related news