The war between Walt Disney and Comcast for the Sky has become a trans-continental issue.
Murdoch’s 21st Century Fox has found itself between two global forces, Disney and Comcast. On Tuesday, the Culture Secretary of Britain has allowed Fox to bid for the Sky, but on condition that Sky News is sold.
The growth of Netflix has made America prefer it to ordinary cable TV. If one of these two giants, Disney or Comcast gets its hold on Fox, they would gain access to their entertainment sector too. Fox’s stake in Hulu is 30%. If they get hold of Fox, they will also own its stake in Hulu, which will make them more powerful. Both of them have a stake in Hulu, and this would become an addition to the already existing stake.
Sky has a hold in the European countries. If Disney or Comcast get their hold on Sky, these giant companies from the US can gain access to the European territory too. If they acquire Sky, they can attract, retain and gain access to more subscribers in Europe, as they have good TV content that has viewers glued to them. It has 23 million subscribers covering five countries.
When Disney offered to buy Sky from Fox, Murdoch was willing to sell it to him, instead of selling it to competitor Comcast, even though his offer was higher.
Towards the end of May, Comcast tried to outbid Disney again.
Now, who is going to win? Who is going to outfox the other?
Murdoch already owns the cable channel in sports, business news, and Fox News. They also own News Corp, HarperCollins, and Wall Street Journal. If they sell to Disney, they will become a large shareholder in it.
Matt Hancock, the British Culture Secretary, has provided 14-day duration to help Fox make its decision.