Disney agrees to buy Sky News as Fox vows to pump more money into the network

Fox has agreed to fund Sky News for 15 years. (Sky News)

As a new condition on Fox’s bid to fully acquire Sky for $25.8 billion, Disney has agreed to buy Sky News and Fox has agreed to up its investment in the news network.

U.K. Secretary of State for Digital, Culture, Media and Sport Matt Hancock issued a statement Tuesday spelling out the revised undertakings that address media plurality concerns for the Sky-Fox deal.

In addition to an agreement for Fox to sell Sky News to Disney, Disney has committed to operating and maintaining Sky News for 15 years instead of the previous 10 years. Disney has also agreed not to sell Sky News for 15 years without the consent of the U.K. secretary of state.

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Fox, meanwhile, has agreed to fund Sky News for 15 years (up from the previous 10 years) and will invest at least £100 million ($130 million) per year.

“In my view, these revised undertakings meet the criteria that I set out to the House on 5 June and will help to ensure that Sky News remains financially viable over the long term; is able to operate as a major UK-based news provider; and is able to take its editorial decisions independently, free from any potential outside influence,” Hancock said in a statement.

RELATED: British government approves Comcast and Fox bids for Sky, setting up showdown

Hancock will now receive public opinions on the new undertakings.

Fox issued a statement welcoming the announcement, which clears the way for Fox to acquire Sky. Should the proposed undertakings become the final decision on the matter, Fox will enter a bidding war with Comcast for Sky.

Earlier this month, U.K. regulators accepted Comcast’s $29 billion rival bid for Sky without conditions.

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