Bid of Comcast for Sky Approved By Brussels

By Mike Mozart via Wikimedia Commons

The bid of Comcast for Sky has been approved by the European Commission, thus turning up the competition in the battle with 21st Century Fox for the said broadcaster.

The authorities in Brussels said that the proposed merger posed no concerns of competition in Europe.

In a statement that was released by the commission, it disclosed: “The commission found that the proposed transaction would lead to only a limited increase in Sky’s existing share of the markets for the acquisition of TV content, as well as in the market for the wholesale supply of TV channels in the relevant member states.”

A statement to the London market was also released by Sky saying that the company welcomed the decision that was made by the European Commission.

The £22bn offer of Comcast for the rest of Sky that is not already owned by Fox is in competition with a takeover bid that was by Fox at £10.75 per share in 2016.

The approval that was announced today comes after the announcement last April that it also unconditionally backs the proposed takeover of Rupert Murdoch’s 21st Century Fox of Sky.

Matt Hancock, the Culture minister, has said that the Sky-Fox deal can continue as long as Sky News is divested.

Last May, the minister also expressed his approval for the Comcast bid on Sky to proceed. He said that he was “not minded” to intervene.

Comcast also topped the bid of Disney for Twenty-First Century Fox with an offer amounting to $65bn that was made this week.

The bid for Twenty-First Century Fox includes the movie studio of the group, all of the television networks of Fox, and the stakes of the company in Sky, Star TV, and Hulu. However, Fox News, Fox Sports, and Fox Broadcasting are not part of the said deal.