Comcast says $31B Sky bid is more than Fox’s Murdoch
In its showdown with Rupert Murdoch and his 21st Century Fox empire, cable giant Comcast pledged to maintain editorial independence if its $31 billion acquisition offer for British satellite paytelevision broadcaster Sky News succeeds.
Comcast officially submitted its bid Wednesday after confirming in February that it would make the offer, setting up a contest for the prized European TV business with Murdoch’s 21st Century Fox.
Sky has 23 million customers and leading positions in the U.K., Italy and Germany, with a proud record of investment in news and programming.
As part of its offer, Comcast vowed to “establish an editorial Sky News board with the responsibility to ensure the editorial independence of Sky News for 10 years.” The company also pledged to maintain at least its current spending level on Sky News for the next 10 years, as well as keep Sky’s United Kingdom headquarters for five years. Comcast also vowed not to buy any U.K. newspapers for five years.
The commitments come as U.K. regulators are scrutinizing Fox’s bid for the 61% of Sky that it doesn’t already own.
Murdoch long has coveted full ownership of Sky but has stumbled in his bids amid concerns over the editorial power he would wield in the U.K., where he also owns several newspapers.
U.K. Culture Secretary Karen Bradley said last fall he planned to refer the proposed deal for review on corporate governance, broadcasting standards and concerns about concentration of too much media power in one company. Comcast’s bid is valued at 16% more than Murdoch’s deal.