As part of its remedy to media plurality concerns from the regulator over its bid for Sky (SKY), 21st Century Fox indicates Disney is considering acquiring Sky News.
Fox says the deal could be completed regardless of whether Disney’s takeover of its other media assets goes through. Shares in Sky are 1% higher at £13.10.
AJ Bell investment director Russ Mould says: ‘The news that Disney is considering a separate bid for Sky News shows the lengths it and 21st Century Fox will go to get Rupert Murdoch out of the picture.
‘The hope is this will smooth regulatory approval for Fox's bid for the 61% of Sky it does not already own by allaying concerns over Murdoch's dominance of the UK media space.
‘This in turn would pave the way for Disney's own $66bn takeover of Fox's media assets including Sky.’
COMCAST THREATENS TO CRASH THE PARTY
Bubbling away in the background is the promise of a £12.50 per share bid from Comcast, trumping the £10.75 on offer from Fox. Comcast is however yet to make a formal approach.
Mould adds: ‘Today's news at least suggests Fox, and by implication, Disney would be willing to respond to any rival offer.’
Liberum media analyst Ian Whittaker agrees. Reiterating a ‘buy’ recommendation on Sky he says: ‘21st Century Fox's proposed remedies on Sky News should be enough to overcome the CMA concerns on news plurality over Fox's bid for Sky.
‘More importantly, we think the news and today's comments from Sky point to a revised bid from Fox/Disney to trump Comcast's 1250p bid. The Mediaset-Sky deal in Italy also makes Sky more attractive to the bidders.’
