Sky withdraws support for Rupert Murdoch takeover bid after Comcast's rival £22bn offer

US giant sparks bidding war that threatens to derail media tycoon's latest efforts to take control of UK broadcaster

Rupert Murdoch's move for Sky News blocked over 'media plurality concerns' (Reuters)

US media giant Comcast has made a £22bn bid for Sky that threatens to scupper Rupert Murdoch’s hopes of a successful takeover of the broadcaster.

Mr Murdoch’s long-held ambition to take full control of Sky has been repeatedly frustrated as regulators and politicians have voiced concerns over the potential damage a deal could do to UK media.

The mogul’s 21st Century Fox agreed in December 2016 to buy the 61 per cent of Sky that it does not already own.

That came five years after Mr Murdoch was forced to give up on his previous attempt to buy Sky as his empire became embroiled in the phone-hacking scandal. The proposed deal could not survive revelations that reporters had listened to the voicemails of hundreds of public figures and that politicians had uncomfortably close relationships with Mr Murdoch and his senior executives.

The competition watchdog is still investigating whether Fox’s current bid for Sky would give the Murdoch family – which also owns The Times and The Sun – too much control over the media.

That probe also threatens to derail a $66bn (£47bn) move by Disney to buy Fox.

Now Mr Murdoch faces the prospect of yet another hurdle if he wants to take full control of Sky – a bidding war with one of the world’s largest broadcasting companies.

After Comcast announced a £12.50-per-share bid on Wednesday, Sky immediately withdrew its recommendation to shareholders to support Fox’s £10.75-per-share offer.

Comcast chief executive Brian L Roberts said his company was determined to be a “responsible and trusted” owner of Sky and pledged to give legally binding commitments to maintain editorial independence at Sky News.

The news channel has been a key sticking point in Fox’s bid because it would give the Murdoch family a powerful presence in broadcast news to add to its print titles.

Earlier this month, Disney expressed an interest in buying Sky News to allay media plurality fears and help Mr Murdoch push through his takeover.

In an apparent reference to Mr Murdoch’s competition troubles, Comcast vowed not to acquire a majority stake in any UK newspapers for five years.

It also confirmed plans to establish a Sky News board, which will be maintained for at least a decade, and promised to maintain annual expenditure on the channel.

“We understand and appreciate the value of news and are committed to protecting the important role that Sky News plays in providing a high-quality impartial news service,” Mr Roberts said.

Comcast tried and failed to snap up Fox’s assets last year (Reuters)

Comcast owns Universal Pictures, DreamWorks Animation and channels such as MSNBC, CNBC and The Weather Channel.

The US giant announced its intention to table a bid in February and has now formalised that approach. Sky’s shares rose 4 per cent on Wednesday after the news.

It has previously pledged to keep Sky’s UK headquarters in west London and that it would continue to support Sky’s technology hub in Leeds and its software engineering academy scheme.

Comcast already has around 1,300 employees in the UK and over the past three years it has invested more than $1bn (£700m) in film and TV productions in the UK through its NBCUniversal business, which has a head office in London. The group is also a major provider of internet services, through its Xfinity brand, and a major phone service provider in the US.

In 2014, it agreed to a $45.2bn takeover of Time Warner Cable, but that deal was abandoned after US regulators raised a host of antitrust concerns.

Last year it pursued a deal to snap up Fox’s assets, but it dropped that offer in December, paving the way for Disney’s attempt to secure most of Fox’s film, television and international assets.