Comcast drops Fox offer to focus on pursuit of Sky

Comcast will focus on bidding for Sky after dropping its interest in 21st Century Fox, the US network said on Thursday

Last month Fox agreed to sell its entertainment assets to Disney for $38 per share. The assets include UK broadcaster Sky, of which Fox owns 39%.

Comcast said on Thursday that it had "does not intend to pursue further" the acquisition of the Fox assets and will instead "focus on our recommended offer for Sky".

Comcast chairman and CEO Brian L Roberts said, “I’d like to congratulate Bob Iger and the team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company."

Last week, Comcast upped its bid for Sky to £14.75 per share from a previous offer of £12.50, trumping a sweetened £14 per share bid from Rupert Murdoch's Fox a day earlier for the 61% shares in Sky it does not already own.

Disney was also told last week by the UK Takeover Panel that it must extend its offer to Sky shareholders, under the 'chain principle', to £14 for each Sky share, in order to ensure minority shareholders benefit equally to Fox. On Wednesday the Panel said it had been asked to review this decision.

The UK government has given the green light for Comcast or Fox to complete the takeover, having received assurances from both companies over the independence of Sky News.