21st Century Fox
21st Century Fox hoped to buy the 61% of Sky it does not own as part of a plan to improve its standing in the international media market. The bid has been on the table since December 2016, working its way through regulatory approval. Initially worth 11.7 billion pounds, the deal is now worth $16.3 billion at current exchange rates. E.U. antitrust regulators approved the deal in April of 2017, but it appears that the U.K. is more guarded.
The acquisition of Sky would give 21st Century Fox complete control to a satellite network covering all of Europe, as well as broadcast rights for popular and profitable content such as English Premier League soccer games, as well as the games of other European leagues. It would also give it access to Now TV, Sky's online streaming service. Although Now TV has a comparatively small subscriber base, it could serve as a foundation on which 21st Century Fox could build.
Global media dominance has been a longtime goal of 21st Century Fox founder and Executive Chairman Rupert Murdoch, and owning Sky would have help insulate the company from competitors like Amazon
The U.K.'s Competition and Markets Authority rejected Murdoch's bid, stating that the purchase would give 21st Century Fox too much power over the British media and was therefore not in the public interest. The regulator also expressed concerns about sexual harassment scandals within the company, though it did not think these were so serious as to revoke Fox's British broadcasting license. Britain's culture minister must rule by May 1 whether or not the deal can proceed.
This is not the first time that Mr. Murdoch has bid for Sky. An earlier attempt at a takeover was abandoned after 21st Century Fox's preceding company was involved in a scandal over phone hacking of private citizens.
Media industry analysts do not expect the decision to impact 21st Century Fox's sale of its assets to the Walt Disney Company
It's possible that the deal could die entirely. But the regulator has hinted that it might approve of the deal with certain tweaks. Sky could spin off or divest from its news channel to limit 21st Century Fox's influence on the British media landscape, or otherwise take measures to separate itself from the rest of the Murdoch empire. Sky itself has suggested it would be willing to shut down its news channel to make the deal happen.
