Disney Could Buy U.K.’s Sky News

REUTERS/David Moir photo

21st Century Fox Inc. on Tuesday said it could sell British TV channel Sky News to Walt Disney Co. to ease the passage of its takeover of broadcaster Sky PLC.

According to The Wall Street Journal, the suggestion is one of two proposals Fox has made to U.K. regulators to address media plurality concerns over its bid to acquire the 61% of Sky it doesn’t already own. The other proposal would ring fence Sky News.

The move is the latest twist in protracted talks between the media companies. Fox has been trying to take full control of Sky, while Disney has bid $52 billion separately for a big chunk of Fox assets, including its 39% stake in Sky. The two deals aren’t technically connected, but Disney views Sky as an important component of its deal and a key to its plans to expand its international footprint.

Fox said Tuesday that Disney had expressed an interest in acquiring Sky News, irrespective of whether Disney’s proposed acquisition of 21st Century Fox assets proceeds.

Fox also proposed separating Sky News from the rest of Sky, with operational independence for 15 years and funding guaranteed by Fox.

Fox agreed to buy all of the European pay-TV group in December 2016, but the deal has been repeatedly delayed by the British government and regulators.

U.S. cable giant Comcast Corp gate crashed the deal in February when it said it would offer 12.50 pounds a share to buy Sky, compared to Fox’s 10.75 pounds, although it has not yet made a formal bid.