Fox investors shrug off UK regulator's criticisms over its takeover bid of Sky

Al Bello/Getty ImagesRupert Murdoch.

  • 21st Century Fox‘s stock was flat on Tuesday morning after a UK regulator raised concerns over Fox’s takeover bid of British satellite company, Sky.
  • The UK’s Competition and Markets Authority (CMA) recommended that the government provisionally block the Fox-Sky deal because they feared media mogul Rupert Murdoch and his family had an outsized influence over British media.
  • The regulator’s final report on the Fox-Sky deal will be released in May.
  • Watch 21st Century Fox’s stock move in real time here.

Shares of 21st Century Fox were flat on Tuesday morning despite being dealt a blow by UK regulators that recommended a provisional block on its bid for a takeover of the British satellite company, Sky.

The UK’s Competition and Markets Authority (CMA) said the Fox-Sky takeover would be “against the public interest,” citing concerns that Rupert Murdoch and his family would have too much control over the UK news media. Murdoch’s assets currently include Sky News – the television network arm of Sky – and Britain’s largest newspapers: The Sun, The Times, and The Sunday Times.

The deal would “reduce the diversity of viewpoints available to and consumed by members of the public,” the authority said.

Fox and Sky made brief statements acknowledging the verdict on Tuesday morning. Fox said it was disappointed by the authority’s findings.

The UK’s Culture Secretary Matt Hancock will release the authority’s final report in May.

21st Century Fox’s 39% stake in Sky is part of Disney‘s $US52.4 billion deal to acquire 21st Century Fox and its film and TV assets in December.

Fox’s stock was trading at $US37.28 per share. It was up 3.61% for the year.

Read more about why one analyst thinks Disney’s acquisition of 21st Century Fox is a good thing.

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