Comast has made their intentions to acquire pay TV service Sky official, placing a bid higher than that offered by 21st Century Fox.
- According to Deadline, Comcast’s bid comes in at £22 billion ($31 billion USD), which works out to £12.50 a share.
- Fox had previously bid was £10.75 a share. It currently owns 39% of Sky and offered to purchase the rest in late 2016.
The Disney Connection:
- Sky is one of the assets Disney is set to purchase from 21st Century Fox as part of their $66 billion deal.
- Disney CEO Bob Iger has previously called Sky the “crown jewel” of the deal with Fox.
Catch-up quick:
- Comcast initially announced their overbid back in February.
- Recently, Disney offered to buy Sky News to ease regulator’s concerns about the Murdoch family’s influence in the U.K. This offer was also not contingent on them closing their 21st Century Fox deal.
- The United Kingdom’s Panel on Takeovers and Mergers also ruled that The Walt Disney Company will need to bid on an acquisition of Sky depending on the timing of their Fox deal. Basically, if Fox’s purchases of Sky isn’t completed by the time Disney closes their purchase of 21st Century Fox assets, Disney will need to place their own bid for the broadcaster.
What they’re saying:
- Sky’s independent directors following Comcast’s bid: “As a result of the announcement of this higher cash offer, the independent committee is withdrawing its recommendation of the offer announced by Twenty-First Century Fox on 15 December 2016 and is now terminating the Co-operation Agreement entered into with Twenty-First Century Fox on the same date.”
- Brian L. Roberts, Chairman and CEO of Comcast Corporation: “We are delighted to be formalizing our offer for Sky today. We have long believed Sky is an outstanding company and a great fit with Comcast. Sky has a strong business, excellent customer loyalty, and a valued brand. It is led by a terrific management team who we look forward to working with to build and grow this business.”