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Fox increases news commitments to seal Sky deal
21st Century Fox has strengthened its commitments to investment in Sky's UK news channel in a bid to secure a takeover of the European cable network.
In a letter to the Competition & Markets Committee, which is still mulling some "firewall remedies" submitted earlier this month, Fox offered to increase to 10 years the US group's commitment to run a Sky-branded news service from the five years previously indicated.
Earlier this month, Fox proposed a series of remedies, including guaranteed funding of the Sky News operation for five years and and independent editorial board that would be free of interference from Fox executives.
On Tuesday, via a letter from its lawyers to the CMA, Fox said: "The duration of the commitment to maintain a Sky-branded news service has been amended from at least five years to at least ten years.
"Linked to this, in addition to maintaining the operational net investment in Sky News at a level not materially different from that set out [in its previous offer], 21CF shall also commit to a further five years of investment in Sky News at a level to be determined at the time, taking into account market conditions and the level of investment required to maintain a Sky-branded news service."
This commitment, which is not longer subject to Fox owning more than 39.14% of Sky's shares as had been stipulated, will also see the independent editorial board, proposed to be called the Sky News Board, would now be required on an annual basis to prepare a statement "confirming that no instances of influence or attempted influence of the editorial output of Sky News have been escalated to it by the Head of Sky News", with this report to be published each year in the group's annual report.
The firewall proposals included a so-called 'sunset clause' relating to the separate agreement between Disney to buy Fox's entertainment assets - including its 39% Sky stake - for $52bn. This has been replaced with a provision allowing the UK culture secretary, upon Fox's request, "to vary or release the undertakings in the event of a material change of circumstances".