UK: Murdoch races to buy Sky before Disney deal closes

According to Bloomberg the Fox-Sky deal is down to a few crucial weeks if he wants to have any hope of succeeding.

Twenty-First Century Fox’s US$15 billion bid to own all of Sky is being investigated by Britain’s regulatory authorities. A potential sale of various Fox assets to Disney, which would likely include Fox’s 39% stake in Sky, adds another dollop of uncertainty to the takeover bid and to what lies ahead for the European pay-TV giant.

As Walt Disney’s own plan to purchase the bulk of Murdoch’s 21st Century Fox looms in the background, the UK’s merger watchdog is set to issue provisional findings this week on whether the Sky takeover would give Murdoch too much influence in the UK and if Fox upholds broadcasting standards. With a final deadline scheduled for the start of March, Murdoch has little time to address any concerns.

“The timetable is fairly tight,” said Matthew O’Regan, a competition law expert at St. John’s Chambers in Bristol, western England. “They would have a short period, a matter of weeks, to respond to those provisional findings if any remedies are required, before a final decision is taken.”

The main hurdle Fox is likely to encounter is the question of Murdoch’s sway over British media and politics. His ownership of three UK newspapers—the Times, the Sunday Times and the Sun—could lead the UK’s Competition and Markets Authority to ask that Sky News, the fourth-most-used news source in the UK, be shielded to preserve its editorial independence, as recommended by communications watchdog Ofcom in an earlier review reported Bloomberg.

Full Content: Bloomberg

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