Sky Might Not Get Its Fairy Tale Ending
If Disney doesn’t step up, Comcast may end up the only bidder.
Murdoch’s magic kingdom.
Photographer: Barcroft Media/Barcroft MediaAn auction of two is one drop-out from being no auction at all. Just look at Sky Plc. The British satellite broadcaster has rival suitors in Twenty-First Century Fox Inc. and Comcast Corp., with a potential backup in the form of Walt Disney Co. But there’s still no guarantee that a bidding war will ensure Sky fetches a full price.
The auction for Sky could fall down in several ways. Rupert Murdoch-controlled Fox could be blocked by U.K. regulators. Alternatively, Murdoch could change his mind about his December deal to sell most of Fox’s assets to Disney, and instead team up with Comcast, which says it’s preparing a better offer. Then Comcast and Fox would become partners instead of rivals for control of Sky.