Fox shares tank on news Murdoch not offering Britain new deal to fast-track Sky takeover

Key Points
  • 21st Century Fox's shares tanked on news that Rupert Murdoch will not offer concessions in his takeover bid for the remaining portion of Sky News.
  • The preferred stock was down about 2.55 percent to 27.92.
Murdoch will not offer new Sky deal to UK government

21st Century Fox has seen its shares tank after reports emerged Rupert Murdoch will not strike a new deal with Britain's culture secretary over his company's takeover bid of British news organization Sky News.

Fox's preferred stock dropped sharply after The Guardian reported Murdoch's decision, which delays Fox's chances to buy the roughly 60 percent of Sky it does not already own. FOXA was down about 2.55 percent to 27.92 mid-afternoon.

The stock has barely moved from where it was a year ago, 28.12, but it is down almost 15 percent from its high in late March.

Speculation had emerged Murdoch would make a deal to ensure British regulators fast-track the deal, rather than subject it to a more in-depth investigation regarding media plurality and independence concerns.

Britain's culture secretary, Karen Bradley, had given Fox until Friday to make concessions.