 has made a £22.1 billion bid for Sky (LON: SKY), challenging Rupert Murdoch's attempted takeover of the UK broadcaster. ){kind=link}
Comcast (NASDAQ: CMCSA) has made a £22.1 billion bid for Sky (LON: SKY), challenging Rupert Murdoch’s attempted takeover of the UK broadcaster.
Comcast is the biggest cable TV firm in the US and owns NBC Universal. The company made an all-cash offer of £12.50 per share, 16 percent higher than the offer made by 21st Century Fox (NASDAQ: FOXA).
“Comcast intends to use Sky as a platform for growth in Europe. We already have a strong presence in London through our NBC Universal international operations, and we intend to maintain Sky’s UK headquarters,” said Brian Roberts, Comcast’s chairman and chief executive.
“Adding Sky to the Comcast family of businesses will increase our international revenues from 9 percent to 25 percent of company revenues.
“We would like to own the whole of Sky and we will be looking to acquire over 50 percent of the Sky shares. We are confident that we will be able to receive the necessary regulatory approvals,” he added.
Following Comcast’s announcement, shares in Sky jumped 18 percent in early trading on Tuesday to over £13.
Unlike the offer from 21st Century Fox, Comcast does not predict any issues with media plurality.
“Sky News is an “invaluable part of the UK news landscape”, said the group. “The company intends to maintain Sky News’ existing brand and culture, as well as its strong track record for high-quality impartial news and adherence to broadcasting standards.”
The UK competition regulator has expressed concerns over the offer made by 21st Century Fox, believing the deal would give too much media power to the Murdoch family.
In an effort to win the regulator over, 21st Century Fox said it would keep Sky News running for at least 10 years, with a fully independent board for the channel.
Analysts from Liberum have said that there is a “very good chance” that Comcast’s bid would go through.