Rivals square up in Sky war

A BIDDING war is a step closer after the Government said Rupert Murdoch’s 21st Century Fox could buy satellite broadcaster Sky provided it hives off its news channel.

Culture Secretary Matt Hancock, pictured, said he needed to be sure the rolling news channel remains “financially viable” over the long term and is able to take editorial decisions “free from any potential outside influence”.

Fox, which already owns 39 per cent and is trying to take full control in a deal worth £11.7billion, has already proposed selling Sky News to Disney.

This was to allay the concerns of the Competition and Markets Authority, which argued the takeover was not in the public interest as it would give Murdoch, owner of newspapers including The Times and The Sun, too much control over news providers and excessive influence over public opinion.

A rival £22billion bid for Sky by US cable giant Comcast, valuing Sky shares at £12.50 as opposed to Fox’s £10.75 offer, was given the green light by Hancock.

Even if Fox wins a bidding war, Murdoch’s control of Sky would be unlikely to last long as he has agreed to sell many of Fox’s film and television assets, including Sky, to Disney in a £39.2billion deal. Hancock said: “I agree with the CMA that divesting Sky News to Disney, as proposed by Fox, or to an alternative suitable buyer, with an agreement to ensure it is funded for at least 10 years, is likely to be the most proportionate and effective remedy for the public interest concerns identified.”

He acknowledged Fox’s proposals include “significant commitments” but added: “There are some important issues which still need to be addressed.

“I need to be confident that the final undertakings ensure that Sky News remains financially viable over the long term, is able to operate as a major UK-based news provider, and is able to take its editorial decisions independently.

“If we can’t agree terms, then I agree with the CMA that the only effective remedy now would be to block the merger altogether. This is not my preferred approach.”

Fox said: “We look forward to engaging with the Culture Department and we are confident that we will reach a final decision clearing our transaction.”

Sky shares rose 4p to 1354p.