Sky falls in on Comcast share price

Share

U.S. cable giant Comcast has emerged the victor in its bid auction with 21st Century Fox to acquire European pay-TV network Sky.

Comcast, one of said competitors, has now emerged as the front-runner in what has become a bidding war for the company - and Sky shareholders are being urged to accept its offer of £17.28 per share, up on Fox's £15.67 per share, in a deal valued at nearly £30 billion.

Shares in British broadcaster Sky have jumped 8.8pc to £17.24 following Comcast's knockout bid at the weekend.

Fox holds a 39 percent stake in Sky, stemming from Murdoch's role in its creation almost three decades ago, which it is selling to Walt Disney (DIS.N) as part of a separate deal.

"This is a great day for Comcast", he said.

More news: Arizona Republican's Siblings Endorse His Opponent In Brutal Ads
More news: Arsenal's Petr Cech Unai Emery more focussed on results than Arsene Wenger
More news: Nokia 5.1 Plus launched in India

Comcast has said it plans to buy back at least $5 billion of stock this year and has not announced any further plans for repurchases. We couldn't be more excited by the opportunities in front of us. They said Comcast's offer was "materially superior" to Fox's, and they urged shareholders to accept it immediately. A bidding war with Fox ensued, culminating in an auction on Saturday in London. Analysts now see the limelight shifting to Hulu, and Disney-Fox's stake in Sky.

Since then, Fox again raised their offer - to UK£14 per share, before Comcast bid UK£14.75.

Murdoch, however, has long had his eye on Sky, and News Corporation quickly picked up 39 percent of the company, which it retains under its new moniker of 21st Century Fox - a hasty rebranding exercise to distance itself from the 2009 phone hacking scandal.

'A process like the one announced today doesn't happen very often and is therefore likely to generate coverage and speculation in the media over the coming days. In addition to being a leader for pay-TV in the United Kingdom, as well as other regional markets including Germany and Italy, the company also sells broadband and mobile phone services.

Share