Sky News future in doubt if Fox deal is blocked

Broadcaster Sky has said it would have to review the future of its Sky News operation if regulators were to block a proposed move for 21st Century Fox to purchase the 61% of the company it does not currently own.

The Competition Markets Authority is currently investigating the potential bid from 21st Century Fox, which would make it the sole owner of Sky.

It was reported on Tuesday that Walt Disney had engaged in talks with Fox over the possibility of acquiring a large part of Rupert Murdoch’s entertainment firm’s operations, including its stake in Sky.

The CMA said in a statement that if Murdoch’s attempt to consolidate Fox’s stake in Sky was blocked, it expected Sky News to continue to compete with other broadcast news outlets.

Sky said it would have to review the situation if the deal was not allowed to go forward.

“Sky would likely be prompted to review the position in the event that the continued provision of Sky News in its current form unduly impeded merger and/or other corporate opportunities available in relation to Sky’s broader business,” the broadcaster sade in a statement to the CMA.

Murdoch and Fox have been on the receiving end of criticism in the past for attempting to reduce plurality among media organisations.

Following an order from the Department for Culture, Media and Sport, UK competition regulators said in October they would probe Fox's £11.7bn offer to purchase the remaining 61% stake of Sky.