Gov clears way for multi-billion pound Sky bidding war

Multinational media business 21st Century Fox and US cable company Comcast are set to go head to head in a bidding war for Sky.

The UK Government cleared the way for the takeovers this week, with Culture Secretary Matt Hancock approving Comcast’s bid and telling Fox it can bid if it sells off Sky News.

Since 2016, Fox has sought the greenlight from UK regulators to acquire the 61% of Sky that it does not already own.

But the bid was held up by politicians and regulators, who feared it might give billionaire Rupert Murdoch too big a slice of the UK media.

Fox, controlled by Murdoch, has attempted to address concerns with concessions like a deal to sell Sky News to Disney once the takeover is complete.

But Comcast launched its bid for Sky in February with a £22bn offer, raising the stakes against an offer from Fox that valued Sky at £18.5bn.

If Comcast wins, it will not have to sell Sky News.

According to the BBC, Matt Hancock MP said further talks will now take place between the Culture Department, Fox, Sky and Disney to find “an acceptable form of remedy”.

Mr Hancock said it is important to ensure Sky News’ long-term financial viability and status as a major UK-based news outlet that makes independent editorial decisions.

Talks will begin immediately “so we can all be confident Sky News can be divested in a way that works for the long-term”, he said, adding: “I am optimistic that we can achieve this goal. However, if we can’t agree terms at this point, then I agree with the CMA [Competition and Markets Authority] that the only effective remedy now would be to block the merger altogether. This is not my preferred approach.”

Shadow Culture Secretary Tom Watson said: “Sky is a gem of British broadcasting respected worldwide, its future and global reputation for excellence is at stake in this process [and] so it is right that, if there is any doubt about whether the proposed solution is workable then it is the duty of the Secretary of State to ensure that this merger is blocked.”

Mr Hancock is aiming to publish the result of the consultation in two weeks.