Disney ordered to make an offer to buy Sky after the merger with Fox

UNITED KINGDOM (OBSERVATORY) –  Walt Disney will be obliged to make an offer to buy Sky after closing the acquisition of assets of 21st Century Fox for $ 52.4 billion, the decision of the Committee on Mergers and Acquisitions of Great Britain said.

Fox owns 39% of Sky, the company previously agreed to buy out all other shares, but is still awaiting regulatory approval. If approval is not received on time (before June 2018), Disney will be forced to offer to buy all Sky papers at a price of 10.75 pounds per share in accordance with British law. That’s the amount for the paper Sky offered Fox.

The decision will not apply if Fox redeems Sky, or if more than 50% of the company’s shares are acquired by other players in the market. On Sky, in particular, the American Comcast aspires.

The merger of Disney and Fox can become one of the largest in the history of the media market, bringing together the two leading Hollywood players. Disney with the purchase of assets Fox will receive rights to such franchises as X-Men, Avatar and The Simpsons. In addition, Disney’s portfolio of assets will include FX Networks and National Geographic.

Shares of Disney at the auction on Thursday fell 0.2%, papers 21st Century Fox rose in price by 0.9%.