21st Century Fox has proposed to sell Sky News to Disney to get regulatory clearance for its plans to takeover of Sky Plc.
With 21st Century Fox’s merger up in the air, it is hoping to come to some sort of resolution before a final decision is announced in May. Fox has now proposed two remedies, which include guarantees to fund a Sky branded news channel in the UK for up to 15 years.
Sky News reports that the first option is to create a new company, Newco, which would be a wholly-owned subsidiary of Sky and would own Sky News. This would include up to seven directors – three independent directors of Sky Plc and two more nominated by those directors, who would be chaired by an independent expert director. There would also be a separate editorial sub-committee who would head Sky News and set the channel’s editorial guidelines.
The second proposal has been described as the “divestiture” of Sky News, Newco would be set up as in the first proposal. If this option is given the go ahead then Newsco would be transferred to Disney once Fox completes its takeover of Sky.
The second option needs further clarity as it represents Disney commitment to buy Sky News whether or not its wider takeover of Fox’s entertainment assets go ahead.
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