Comcast’s $40 bn bid beats 21st Century Fox for Sky acquisition

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Comcast has outbid 21st Century Fox and its powerful backer, Disney, in the auction to take control of European broadcaster Sky. The competitive bidding process has been completed with the announcement of $40 billion (£30.6 billion) bid for the fully diluted share capital of Sky.

Comcast prevailed with the highest offer price during the bidding process to acquire UK pay TV service provider Sky with the highest offer price of £17.28 ($22.66) per Sky share.

Comcast was engaged in the long bid war with Rupert Murdoch’s 21st Century Fox this summer to acquire Sky assets and 23 million subscribers. The deal now awaits the final nod from the Sky shareholders.

Comcast chairman CEO Brian L. Roberts said, “This is a great day for Comcast. Sky is a wonderful company with a great platform, a tremendous brand, and an accomplished management team. This acquisition will allow us to quickly, efficiently and meaningfully increase our customer base and expand internationally. We couldn’t be more excited by the opportunities in front of us. We now encourage Sky shareholders to accept our offer, which we look forward to completing before the end of October 2018.”

The mandatory process of having the deal ratified by the Sky shareholders with tendering of their shares to Comcast is expected be completed in a month’s time. Sky has recommended its shareholder to accept Comcast offer.

Also Read: Disney wins war for 21st Century Fox, but battle with Comcast far from over

“As the price of the Comcast Offer is materially superior, it is in the best interests of all Sky shareholders to accept the Comcast Offer,” the company said. “Accordingly, the Independent Committee unanimously recommends that Sky shareholders accept the Comcast Offer, and in order to ensure the successful closing of the Comcast Offer, and given the possibility of a delisting of Sky in the near future, urges shareholders to accept immediately.”

The US cable giant Comcast had outbid its rival by $3.6 billion, offering £17.28 (over $22.66 per share). Rupert Murdoch’s Fox offered £15.67 (over $20.66) per Sky share, according to an official statement from the Takeover Panel.

Comcast in the next move may get into negotiations with Disney for the Sky share held by the latter.

Also Read: Fox-Disney deal: Comcast out as Fox accept Disney’s revised $71.3 bn offer