Shares in Sky (LON:SKY) have fallen into the red in today’s session, with investors reacting negatively to Disney’s deal to take over assets of Rupert Murdoch’s Twenty-First Century Fox, including the latter’s holding in the UK group. The move comes amid Fox’s ongoing efforts to take full control of the London-listed pay-TV company.
As of 14:17 GMT, Sky’s share price had given up 2.03 percent to stand at 988.50p, underperforming the benchmark FTSE 100 index which currently stands 0.18 percent lower at 7,483.03 points. The group’s shares have added less than one percent to their value this year, as compared with about a 7.5-percent rise in the Footsie.
Disney to take Fox’s stake in Sky
Disney has officially announced a deal which will see the company take over assets of Rupert Murdoch’s 21st Century Fox, including the latter’s 39.1-percent stake in Sky. Fox has been trying to take full control of Sky for the past year, with the takeover currently being investigated by the Competition and Markets Authority and last month, the UK group signalled that it could shut down its Sky News channel if it turns out to be an obstruction to the group’s takeover by Fox.
City A.M. noted in its coverage of today’s news that Fox’s ongoing bid to acquire the full shareholding of Sky will now be inherited by Disney.
Fox ‘fully committed’ to current offer
Sky noted the deal, saying that it was “anticipated that 21st Century Fox will seek to complete its planned acquisition of the 61 percent of Sky it doesn’t already own,” and that the US group remained “fully committed to completing the current Sky offer”. The transaction is currently expected to complete by June 30 next year.