Walt Disney Submits Principle Bid for Sky News

The Walt Disney Co. has agreed to acquire the Sky News network in principle, according to The Hollywood Reporter.

The company will increase its annual funding to an estimated $130 million for 15 years in an effort to help 21st Century Fox get final approval in the U.K. for its bid to take full ownership of Sky News, which it currently holds 39 percent of.

The U.K. news organization is set to have an annual budget slightly smaller than the promised amount. The commitment would equal nearly $2 billion over 15 years.

The announcement was made Tuesday and kicked off a 15-day comment period for other interested parties. After that time, the U.K. government will decide if it will give Fox the greenlight for a potential deal to buy the remaining stake in Sky.

U.K. culture secretary Matt Hancock recently approved Fox’s bid for full ownership of Sky News under the condition of a sale of the news channel to Walt Disney or a different party.

Hancock also confirmed that Comcast’s offer for Sky will not undergo a regulatory review in Britain, laying the foundation for a potential bidding war for Sky.

Sky’s independent board committee withdrew its support of the Fox deal after Comcast made a higher offer official last month.