Comcast makes rival £22bn cash offer for Sky

Randal Sanchez
April 25, 2018

"As a result of the announcement of this higher cash offer, the Independent Committee is withdrawing its recommendation of the offer announced by 21CF on 15 December 2016 and is now terminating the Co-operation Agreement entered into with 21CF on the same date", the Sky committee said soon after the Comcast offer was lodged.

Comcast on Wednesday said it was offering £12.50, or $17.45, a share for the company.

USA media conglomerate Comcast has made a 22 billion pound ($30 billion) bid for London-based pay TV operator Sky in move that threatens a rival bid by Rupert Murdoch.

Comcast made a formal $31 billion offer for United Kingdom -based satellite TV broadcaster Sky, challenging Walt Disney (DIS). The offer is at a 16 percent premium to Fox's 10.75 pound-per-share bid for Sky. Comcast is making an unsolicited $31 billion offer for Sky.

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After Comcast lodged its offer, Fox, which already owns 39% of Sky, said it is committed to its bid and it is weighing its options. "Sky will be our platform for growth across Europe". The company now anticipates that the acquisition will complete before the end of 2018.

Its takeover play further complicates the Fox/Sky saga, with Walt Disney also recently being told by Britain's Takeover Panel that it must bid for the whole of Sky even if Rupert Murdoch's offer is blocked. Comcast expects the acquisition to generate annual run-rate synergies of around $500 million.

"We have long believed Sky is an outstanding company and a great fit with Comcast", CEO Brian Roberts said in the statement. "Sky has a strong business, excellent customer loyalty, and a valued brand". Disney had agreed in November to buy 21st Century Fox (FOXA) and its stake in Sky. Since Comcast announced its proposed bid in February, Sky's shares had been trading at more than 13 pounds, at a premium to the Comcast price, as investors expected a protracted battle for the United Kingdom broadcaster.

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