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Sky takeover battle heats up with new bids from Fox, Comcast
NEW YORK, July 12, 2018 (BSS/AFP) – Comcast raised its bid for pan-European
TV group Sky late Wednesday, topping an offer from 21st Century Fox made only
hours earlier and escalating a takeover battle as media giants reposition
themselves for the streaming era.
Comcast lifted its bid for Sky to o26 billion ($34.3 billion) only hours
after Rupert Murdoch’s Fox boosted its offer for the 61 percent of Sky it
does not own.
Fox’ latest bid values Sky at o24.5 billion ($32.4 billion).
The battle for Sky comes as Comcast is also embroiled in a takeover battle
with Disney for Fox entertainment assets that are being split off from
Murdoch’s empire. Some analysts have said Comcast could drop its bid for the
Fox assets if it wins Sky.
Sky’s jewel in the crown is its live coverage of English Premier League
soccer, while the group also provides broadband internet and telephone
services.
Media giants such as Disney and Comcast have been looking to beef up their
creative offerings to compete with Netflix and other streaming services that
are eroding the value of conventional cable television assets.
The latest back-and-forth started Wednesday morning London time when New
York-listed Fox raised its offer to o14 for each outstanding share, up
substantially on a previous tilt that was pitched at o10.75.
“As the founding shareholder of Sky, we have remained deeply committed to
bringing these two organizations together to create a world-class business
positioned to deliver the very best entertainment experiences well into the
future,” Fox said.
“The enhanced scale and capabilities of the combination will enrich Sky’s
ability to continue on its mission for years to come, especially at a time of
dynamic change in our industry.”
But only hours later Comcast rebutted the Fox move, releasing a bid after
US markets closed of o14.75 per share, about five percent above the Fox
proposal.
Comcast said its sweetened offer has been accepted by Sky independent
Committee directors.
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“Comcast has long admired Sky and believes it is an outstanding company and
a great fit with Comcast,” the company said in a statement released after the
US stock market closed.
“Today’s announcement further underscores Comcast’s belief and its
commitment to owning Sky.”
– Concerns over plurality –
Fox’s long-running pursuit for all of Sky has been plagued by UK government
fears over media plurality and broadcasting standards — and the influence of
Australian-born US citizen Murdoch.
Murdoch owns major British newspaper titles The Times and The Sun. Critics
say obtaining full control also of the rolling television channel Sky News
would give him too much influence in the news business.
To remedy this, Fox has proposed to sell Sky News to Disney.
Disney has gained the upper hand in the battle with Comcast for Fox’s
assets, winning US regulatory approval for the transaction and scheduling a
July 27 shareholder vote on the proposed $71.3 billion deal.
Still, Comcast has not walked away from trying to overtake the Fox-Disney
tie-up.
Assets in the Fox deal include production companies responsible for “The
Simpsons” and “Modern Family,” film production businesses and a major stake
in the online platform Hulu.
Should Disney’s bid for the Fox assets succeed, it will also obtain Fox’s
39 percent stake in Sky as part of the package.
Shares of Comcast rose 0.2 percent in afterhours trading Wednesday to
$33.82, while Fox slipped 0.1 percent to $47.34. Disney was unchanged.
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