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Why the UK Government Cleared the Way for Fox to Buy Sky Assets

Why the UK Government Cleared the Way for Fox to Buy Sky Assets

Rupert Murdoch–owned Twenty-First Century Fox (FOXA), which owns a 39% stake in Sky, finally gotten a green light from the UK (EWU) government on July 12 to buy the remaining 61% stake in the London-based pay-TV company. The Fox deal has been held up for quite some time over regulatory concerns that the tie-up would give Fox too much control over Britain’s media. The UK government thus asked Fox to sell Sky’s 24-hour news channel Sky News to a third party such as the Walt Disney Company (DIS) if it wants to buy 61% of Sky.