Britain Unlikely to Review Comcast's Sky Deal -- Update
May 21 2018 - 11:06AM
Dow Jones News
By Stu Woo
LONDON -- Britain is unlikely to open an antitrust review into
Comcast Corp.'s $30 billion bid for U.K. pay-TV giant Sky PLC, a
senior government official said Monday, removing a hurdle for the
cable firm in a takeover battle that also includes 21st Century Fox
Inc. and Walt Disney Co.
U.K. Culture Secretary Matt Hancock said he had told both
Comcast and Sky that he was "not minded to" intervene in the
proposed merger. That wording, used by British politicians to
indicate a likely outcome, isn't binding. Mr. Hancock said he would
allow interested parties, which could include Fox and Disney, until
Thursday to submit arguments for and against a government review of
the deal. Then he will make a final decision.
However, Comcast's proposed Sky acquisition does face a review
by European Union antitrust regulators, who are scheduled to make a
decision by June 15.
The independent directors of Sky have said they will consider
competing offers from Fox and Comcast. Fox has bid GBP10.75 a
share, while Comcast has offered GBP12.50. Investors have sent Sky
shares well above that mark, to GBP13.62 a share as of Monday
afternoon, in anticipation of a bidding war.
In a statement, Sky acknowledged Mr. Hancock's preliminary
decision. Comcast said it welcomed the statement. A Fox spokesman
didn't immediately return requests for comment.
The U.K. government's guidance Monday marks the latest step in a
monthslong saga.
Fox in December 2016 proposed a $16 billion deal to buy the 61%
of Sky it doesn't already own. British antitrust regulators
reviewed the proposal, saying they were concerned that Fox's full
ownership of Sky, which runs a news channel, could give media mogul
Rupert Murdoch and his family too much influence over U.K.
media.
Mr. Murdoch and his family are major shareholders in Fox and in
News Corp, which publishes three major British newspapers, as well
as The Wall Street Journal.
To mollify regulators, Fox has proposed setting up an
independent board to oversee Sky's news operations. In addition,
Disney has offered to buy Sky's news channel. Disney in December
2017 launched its own $52 billion to buy the majority of Fox
assets, including its 39% stake in Sky. Mr. Hancock will make a
final decision on Fox's proposed offer by June 13.
Compared with the Murdoch family, Comcast has a much smaller
U.K. presence, operating TV channels in the country via its
NBCUniversal unit.
Write to Stu Woo at Stu.Woo@wsj.com
(END) Dow Jones Newswires
May 21, 2018 10:51 ET (14:51 GMT)
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