Walt Disney In Acquiring Sky News Sees Operation In A Single Entity

Walt Disney in acquiring Sky News

Famous media mogul, Rupert Murdoch has increased pressure on Britain to support his bid of approximately $14.5 billion for Sky. Murdoch wants to separate or sell Sky News legally.

On Tuesday, 21st Century Fox said that Walt Disney Co. might be interested in acquiring Sky News. The news channel also reported that Sky News could also become a separate entity within the Sky Group if Walt Disney Co. does not purchase it.

Previously in December 2016, Fox agreed to acquire 61 percent of Sky. However, the deal had been unexpectedly postponed by the British regulators as well as the government.

Fox has already confirmed that Sky News will stay independent and will be under the leadership of Mr. Murdoch. However, critics have expressed their concerns due to the influences Murdoch has within the media circles through his ownership with Times and Sun newspapers.  

Earlier in February, Comcast Corp, the United States cable giant said that it can offer 12.50 pounds per share to acquire Sky. Fox had already said that it could offer up to 10.75 pounds per share.

As the Sky deal faced unforeseen delays due to regulations, Fox, on the other hand, decided to sell off a number of its assets including its stake in Sky to Disney.

Fox had a 39 percent stake in Sky; as a result, Murdoch was technically out of Sky. The media company needs to convince the CMA (Competition and Markets Authority) if they want to pursue owning Sky News. The company said that its representatives are working in close coordination with the CMA.

Fox also stated that it has the option to separate Sky News from the Sky Family legally and allow operation independently. Further, Fox said that Disney had shown interest in purchasing Sky News.

Last month, a group of lawmakers from UK showed concern over this deal and said that Murdoch should be banned from buying Sky News. They believe that Murdoch influence in the political circles can create a biased situation.

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