Comcast defeats Fox in war for Sky
Comcast has beaten Rupert Murdoch’s 21st Century Fox in the battle for Sky after offering £30.6bn (€26bn) in a dramatic auction to decide the fate of the pay-television group.
The US cable giant bid £17.28 a share for control of Sky, bettering a £15.67-a-share offer by Fox, the UK’s Takeover Panel said.
Buying Sky will makePhiladelphia-based Comcast, which owns the NBC network and Universal Pictures, the world’s largest pay-TV operator with around 52m customers.
Chairman and chief executive Brian Roberts has had his eye on Sky as a way to help counter declines in subscribers for traditional cable TV in its core US market as viewers switch to video-on-demand services like Netflix and Amazon.
“This is a great day for Comcast,” he said. “This acquisition will allow us to quickly, efficiently and meaningfully increase our customer base and expand internationally.”
Comcast’s knock-out offer thwarted Mr Murdoch’s long-held ambition to win control of Sky, and is also a setback for US entertainment giant Walt Disney, which would have likely been its ultimate owner.
Disney has agreed a separate €60bn deal to buy most of Fox’s film and TV assets, including its existing 39% stake in Sky, and would have taken full ownership after a successful Fox takeover.
Comcast’s final offer was a jump on its bid going into the auction of £14.75, and compares with Sky’s closing price of £15.85 on Friday.
Comcast believed it needed to deliver a knock-out blow given that Fox’s existing stake in Sky gave it a chance of victory if it was a close second to Comcast.
Its final offer — more than double Sky’s share price before Fox made its approach in December 2016 — quickly won the backing of Sky’s independent directors on Saturday.
“We are recommending it as it represents materially superior value,” said Martin Gilbert, chairman of Sky’s independent committee. “We are focused on drawing this process to a successful and swift close and, therefore, urge shareholders to accept the recommended Comcast offer.”
Fox said it was considering options for its 39% stake.
