UK regulators announced today that they do not believe Comcast’s proposal to purchase the Sky media company presents any public interest concerns.
- As Deadline reports, this announcement stands in contrast to the reaction 21st Century Fox received as regulators have voiced concerns about the Murdochs controlling too much of UK media.
- Despite those concerns, the process of allowing Fox to purchase the 61% of Sky it doesn’t yet own continues.
- Notably, Disney would take control over Sky if their deal to purchase assets from 21st Century Fox were to close. Bob Iger has also said it would retain the 39% stake currently held by Fox even if Comcast ended up purchasing the rest.
- Speaking of Disney’s deal with Fox, rumors suggest Comcast will look to outbid Disney for the assets if the proposed AT&T-Time Warner merger were approved (such a ruling would ease regulatory concerns which were said to have been a major factor in Fox declining Comcast earlier).
What they’re saying:
- Matt Hancock, UK’s Secretary of State for Culture, Media, and Sport: “On [May 7th] 2018, Comcast Corporation formally notified the European Commission of its intention to acquire the entire issued share capital of Sky plc. Under section 58 of the Enterprise Act 2002 (“the Act”), the Secretary of State has the powers to intervene in certain media mergers on public interest grounds.
- “Having reviewed the relevant evidence available, I can confirm that I have today written to the parties to inform them that I am minded not to issue an EIN [European Intervention Notice] on the basis that the proposed merger does not raise concerns in relation to public interest considerations which would meet the threshold for intervention.”
- “This is a quasi-judicial decision and I am required to make my decision independently, following a process that is scrupulously fair and impartial, and as quickly as possible. I will now allow until 5pm on Thursday, [May 24th] for interested parties to submit written representations, and I aim to come to a final decision on whether to intervene in the merger shortly.”