Fox Could Sell Sky News To Disney Under New Proposal

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"We believe that the enhanced firewall remedies we proposed to safeguard the editorial independence of Sky News addressed comprehensively and constructively the CMA's provisional concerns", Fox said in a statement on Tuesday. Fox now owns more than a third of Sky's shares and has bid $16.5 billion for the remaining stake in the company.

The proposed takeover is very controversial as critics have warned tit would leave too much media power in the hands of the Murdoch family - who already own The Times, The Sunday Times and The Sun. "The divestment of Sky News to Disney is separate from, and not conditional on, Disney's acquisition of Fox".

Should Disney take Sky News out of the equation however then those concerns could be erased at a stroke, smoothing over a rocky road to the deals conclusion.

According to these new Fox concessions revealed by the CMA, the American group formally proposes to sell the Sky News streaming channel to the American giant of Disney entertainment. Sky has been a consistent innovator in its use of technology to deliver a fantastic viewing experience and has a proud record of investment in news and programming. Comcast also recently offered to acquire Sky for $31 billion. "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", said 21st Century Fox in a statement.

The competition regulator is expected to offer its recommendation on Fox's bid for Sky by May 1.

It remains to be seen what decisions will be made in the next few days.

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One London-based hedge fund said the measures should be sufficient, but that "the price issue is not going away", suggesting Fox would have to raise its bid. His readiness to buy Sky News therefore signals a clear commitment to owning Sky.

Fox is meanwhile ramping up its Sky takeover efforts after U.S. cable giant Comcast offered more than £22 billion for the entire group in February.

"They've now gone as far as to persuade Disney to buy a lossmaking business, because everyone knows Sky News doesn't make any money", he said.

A group of high-profile British lawmakers, including former Labour party leader Ed Miliband, called last month for Murdoch to be blocked from buying Sky, despite the promises Fox had already made to ensure the independence of Sky News.

Announcing the two remedies, Fox said: "We have worked diligently with the CMA throughout its extensive review".