Comcast Launches £22bn Sky Takeover Bid
US broadcasting and cable TV giant Comcast has made a £22bn bid for Sky, entering into a bidding war with Rupert Murdoch’s 21st Century Fox.
The all-cash offer, which values the broadcaster at £12.50 a share, threatens Murdoch’s attempts to take full control of the pay-TV group, having already agreed to buy the 61% of Sky it does not already own in an offer worth about £19bn.
However, following the new Comcast move, Sky said it was withdrawing its recommendation for the Fox bid, confirming in a statement: “The Independent Committee of Sky welcomes today’s announcement by Comcast of its firm intention to make a £12.50 per share pre-conditional cash offer for Sky.”
“As a result of the announcement of this higher cash offer, the Independent Committee is withdrawing its recommendation of the offer announced by 21st Century Fox on 15 December 2016 and is now terminating the co-operation agreement entered into with 21st Century Fox on the same date.”
Comcast is the biggest US cable TV firm, and owns the broadcast TV network NBC and Universal Pictures.
“We are delighted to be formalising our offer for Sky today,” said Comcast chief executive Brian Roberts.
“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.”
Comcast, which has 1,300 employees in the UK, including the production company behind Downton Abbey, also made a number of pledges including to keep Sky’s HQ in Osterley, south-west London, and guarantee the editorial independence and funding of Sky News for at least 10 years.
