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Disney may be forced to submit Sky bid if Fox deal rejected

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Photo: Daniel LEal-Olivas/AFP via Getty Images

The United Kingdom's Panel on Takeovers and Mergers announced Thursday that the Walt Disney Company, which is currently pursuing a bid to take over 21st Century Fox' s entertainment assets in the United States, will be forced to submit a bid for Sky Broadcasting should the competition authority block Fox's bid for plurality concerns.

Why it matters: Disney would have to submit a bid for Sky for at least 10.75 pounds per share upon completion of its $52 billion merger with 21st Century Fox — the same price Fox offered when initially pursuing the merger in 2016. This means that Sky shareholders may not anticipate a higher bid from Disney, but assures them they have a bidder of equal value if the competition authority blocks Fox's efforts.