There were fears about how it could affect competition in the media industry. But Rubert Murdoch’s 21st Century Fox has agreed a deal to takover Sky for a whopping £11.7 billion.
Mr Murdoch tried to take over Sky five years ago. But, at the time, the phone hacking scandal broke and, with his News of the World newspaper under fire, he was forced to back away from any potential deal.
However, the media mogul has now reached an agreement with the bosses of British firm Sky, who say they will now be recommending shareholders go ahead with the deal. While it took take months to come to a final agreement, Mr Murdoch has indicated that he wants to take over by the end of next year.
Fit and proper person?
The initial agreement means that Culture Secretary Karen Bradley must now think about whether she out to refer the deal to regulator Ofcom, which will look at whether a potential broadcast owner passes a “fit and proper person test”.
A statement from 21st Century Fox said there was a strong rationale for bringing Sky into its business empire. The statement pointed out that the sheer scale of the firm would mean it was the worldwide leader in content creation and distribution, which would improve sports and entertainment offerings and give it the freedom to develop new technologies.
A spokesperson said: “It adds the strength of the Sky brand to our portfolio, including the Fox, National Geographic and Star brands.”
The deal, which will give £10.75 per share, could mean that Sky CEO Jeremy Darroch receives £24.5 million as he has rights to 2.2 million shares as part of the terms of his contract.
However, MPs have urged Prime Minister Theresa May to prevent the deal from going ahead as they say it is inappropriate that Mr Murdoch should have control over a television network which reaches 22 million homes in Britain.