Why Disney Agreed to Raise Funding for Sky News for 15 Years

Media giant Walt Disney (DIS) is making a 15-year funding commitment to Sky News, a unit of London-based Sky, which is an acquisition target of both Comcast (CMCSA) and 21st Century Fox (FOXA). The current budget of Sky News is around 90 million pounds per year. Disney’s commitment includes funding Sky News with at least 100 million pounds (or $132 million) per year for the next 15 years, which is up from the ten-year funding guarantee it had offered previously.