A month after 21st Century Fox had accepted the House of Mouse's $71.3 billion bid to acquire its film studio and TV assets, an impending lawsuit from a Fox shareholder could bring proceedings to another halt.
The Comcast NBC logo is shown on a building in Los Angeles, California, U.S. June 13, 2018.
Shares in Sky Plc were down 0.8 percent at 14.90 pounds, suggesting investors believe Comcast could come back with another improved offer.
Should a deal for Fox's assets - including the 39% share of Sky - close before control of the satcaster is resolved, the winning bidder would be required to make an offer for the remaining 61% of Sky, according to United Kingdom takeover rules.
Fox will be hoping to see off competition from Comcast after a long battle to buy the remaining stake in Sky, having faced heavy scrutiny from the Government and the competition watchdog. "We will be posting our offer document to Sky shareholders shortly".
Fox upped its offer for Sky by 30% on Wednesday, ahead of the deal getting the green light in the United Kingdom, which prompted Comcast to counter hours later with a richer $34 billion bid.More news: Cristiano Ronaldo to Juventus: Pele praises Real Madrid star's move
Fox's takeover plan is expected to receive formal approval from the United Kingdom authorities this week after more than 18 months of investigations.
"Disney's internal forecasts now, on the basis of the cash flows they've published for Sky, would value it at 16 pounds", he said. The European pay-TV company has become a pawn in a wider contest between Comcast and Walt Disney (dis) for the bulk of Murdoch's media empire, as each seeks scale to take on streaming competitors like Netflix.
One hedge fund manager with a stake in Sky welcomed that pledge as a sign that Disney backed Fox in the battle.
Fox originally bid £10.75 in December 2016, but its bid was trumped in February by Comcast, which bid £12.50.
KitGuru Says: No matter who ends up getting their hands on Fox's assets, the loss of competition from such a large player in the market is sure to be felt across the entertainment industry.
Fox said it had secured the agreement of the independent committee of Sky for the deal. The opposition has not completely subsided despite the plan to spin off Sky News.