Sky TV included in sale of Murdoch’s entertainment firm to movie giants
SKY TV look set to have a new owner after Disney launched a £39billion takeover bid for Rupert Murdoch’s 21st Century Fox.
The move would see the movie giants claim control of the Australian mogul’s media empire, including Fox’s film and television studios, cable entertainment networks and international TV businesses.
If backed by regulators and shareholders, the deal would reinforce Disney’s position as one of the world’s biggest media companies and strengthen their market position amid the rise of video-streaming services and the growing presence of Amazon and Google.
The move would mean a wave of high-profile brands, TV stations and shows would fall into Disney’s hands, from X-Men, Avatar and the Simpsons to FX Networks and National Geographic.
In a call with investors, Murdoch defended the deal, saying: “We know a lot of you are wondering, ‘Why did they come to such a momentous decision? Are we retreating?’ Absolutely not. We are pivoting at a pivotal moment.” As part of the announcement, Fox said they would press ahead with attempts to buy the 61 per cent of Sky they do not already own, before the Disney deal closes in an expected 12 to 18 months’ time. It was rumoured Fox chief executive and Sky chairman James Murdoch – Rupert’s son – would be installed as the boss of Disney but the entertainment giants claimed Bob Iger would remain chairman and CEO until 2021. Iger told Good Morning America: “James and I will be talking over the next couple of months. He will be integral to the integration process. He and I will be discussing whether there is a role for him or not at our company.” Asked whether Sky News had a future under Disney’s ownership, Iger added: “Absolutely. All of Sky has a future.” As part of the deal, Disney will take on £10.2billion of debt, with shareholders in 21st Century Fox receiving 0.2745 Disney shares for each Fox share. Disney were left as the frontrunners to secure the Fox assets after rival suitor Comcast pulled out of the race on Monday.