Comcast Formalizes Bid for Sky as UK Rules “Chain Principal” Applies to Disney

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There’s certainly no shortage of Disney/Fox/Comcast/Sky news this week, and today has been no exception. Following a rapid back-and-forth between Fox and Comcast over Sky earlier this week, Comcast has formally submitted their “superior” bid for the company. Meanwhile, UK regulators have issued a now-redundant ruling that Disney’s increased bid for Fox requires they pay more for Sky.

Comcast Formalizes Bid for Sky:

  • As required by UK takeover law, Comcast formally presented their bid for the shares of Sky that 21st Century Fox does not own
  • The offer is 14.75 pounds per share
  • The Independent Committee of Sky has recommended the offer as it is the highest current offer
  • The deal must be accepted by August 22
  • Fox still has time to increase their offer

Disney Must Pay More for Sky:

  • As part of the UK’s Chain Principal, the UK Takeover Panel has ruled that Disney would have to make an offer of 14 pounds per share for Sky, if they purchase Fox before Sky is sold to either Fox or Comcast
  • This ruling was anticipated as it was unknown what price the panel would make Disney offer
  • As the 14 pounds per share is less than Comcast’s current offer, it is a moot point

AT&T-Time Warner Appeal

  • Although not directly related to Disney, Comcast, or Fox, news regarding the recent AT&T-Time Warner merger is sending ripples through the media landscape.
  • The Department of Justice has announced they will appeal Judge Leon’s decision to allow the AT&T-Time Warner deal to occur
  • The deal has closed, so if the DOJ is successful, the deal would need to be unwound
  • AT&T says they will be focused on executing their operation plan for the former TimeWarner assets as they believe the appeal has almost no chance of succeeding
  • Some have speculated that this news may chill Comcast’s ability to buy the 21st Century Fox assets
  • Others say that Comcast’s willingness to divest the Regional Sports Networks and their stake in Hulu would assuage any anti-trust concerns
  • Comcast has yet to make a second offer that would top Disney’s revised offer