Britain powered Rupert Murdoch’s Twenty-First Century Fox had answered its remaining doubts at hand the independence of Sky News if the U.S. company buys all of its parent Sky, paving the way for a takeover fight over the pay-TV group.
Fox in April offered to spin off Sky News to Walt Disney to precede off objections that Murdoch could have too much influence if he owned Sky as spring as his British newspapers.
Media Secretary Matt Hancock had said Fox’s bid was the best remedy for the public interest concerns, but he wanted some additional warranties.
He said on Tuesday that Fox had secured a commitment from Disney to go Sky News for 15 years rather than 10 years, an swell in the funds available for the channel to at least 100 million pounds ($132 million) a year, and a swear to retain its editorial independence.
Hancock said the revised undertakings whim help to ensure that Sky News remains financially viable across the long term, free from any potential outside influence.
The fixes, which are subject to a 15-day public consultation, clear the way for a straight rail for Sky between Fox and its U.S. pay TV rival Comcast.
Sky welcomed the decision, saying the UK approval function remained the only outstanding precondition that was stopping it putting Fox’s step to Sky shareholders.
Fox said it now looked forward to a final decision clearing its business.
Fox’s long standing 10.75 pence-a-share offer was trumped by a 12.5-pounds-a-share bid from Comcast in April, valuing Sky at $31 billion.
The apportions were trading at 13.37 pounds on Tuesday afternoon, suggesting investors over this takeover saga still has a long way to go.
Even if Fox wins the affray for Sky, it is unlikely to own the asset for long.
Comcast and Disney are going head-to-head in the Opinion States to buy most of Fox’s TV and movie assets, a deal that would incorporate its current 39 percent stake in Sky, and potentially all of Sky if Fox is successful in buying the guild.
($1 = 0.7599 pounds)
Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.