Disney-Fox and the future
of Sky
Walt Disney Company’s proposed purchase of 21st Century Fox has
been viewed as a deal that will reshape the media landscape. Yet despite
potentially addressing the concerns that have been identified in the CMA’s
public interest review of Fox’s bid to acquire the interests in Sky that it
does not already own, this latest development may not make not much difference
to the course of that review as matters presently stand.
Disney will acquire 21st
Century Fox’s interests in Sky and Tata Sky, among other assets. Fox has
said that it expects to complete the acquisition of the Sky shares that it does
not own by 30 June 2018.
Meanwhile, the CMA’s
public interest review of the Fox-Sky transaction is due to report by the
statutory deadline of 6 March 2018. The CMA plans to issue its
provisional findings in January.
As to plurality, the theories of harm identified by the CMA are
a reduction in the range of viewpoints available to and consumed by the public;
and an increase in the influence of the Murdoch Family Trust on public opinion
and the political agenda.
In relation to
broadcasting standards, the CMA has identified a theory of harm that there will
not be a genuine commitment to broadcasting standards after the transaction.
The CMA’s review is far
advanced. It remains to be seen to what extent it will consider the
Disney deal, which is itself subject to regulatory approval. The CMA
operates on the basis of what is known or reasonably likely and not on what may
happen at some future date, even though this does not always match real-world
realities.
That said, there do not seem to be insuperable regulatory
hurdles for the Disney transaction and it should allay any residual
public interest concerns with the Fox-Sky combination.
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