According to the Takeover Panel of the UK, the takeover of Sky, one of the most renowned broadcasters, will be decided by an auction. Sky has been facing rival bids from Comcast and Fox, owned by US Conglomerate and Rupert Murdoch, respectively.
The Takeover Panel has announced an auction to be held on Friday and will continue till Saturday evening. There will be three rounds in the procedure and decision has been taken after mutual consent.
Fox was the first firm to bid to take over the 61% shares of the Sky. However, the series of events took a different turn when Comcast placed the bid. The latter placed a bid of £26 billion while the former had placed a bid of £24.5 billion.
The concerns regarding the settlement rose due to the regulatory issues of the media plurality and the influence of Rupert Murdoch on the community of the UK media.
The chief of the European Media Research at Liberum Capital, Ian Whittaker stated that it is not usual to hold an auction for the case of a takeover. However, the legal process will amicably solve the concern. He further added that the Takeover Panel has taken an unusual yet splendid decision. This will not only benefit the parties during the takeover but will also conclude the long-running disagreements between the parties.
According to a media analyst, Sky is the shining star in the genre of media. With around 23 million subscribers of pay-TV in Europe and endless scopes for elaboration in the genre of broadband business, the company to take over Sky will have great advantages.
Sky Sports became eligible for the TV packages of the UK Premier League along with winning the license to show the series of Games of Thrones. It was also granted permission to telecast the original contents.
However, amidst the battle, the current subscribers of Sky will encounter hiked prices.