Comcast Offers $31 Billion in Cash for Sky

In a major consolidation move across the Atlantic, Comcast Feb. 27 announced a $31 billion cash offer for British satellite giant Sky. The $17.40 per share offer bests Rupert Murdoch’s $14.96 per share offer through 21st Century Fox.

Murdoch has sought to acquire the remaining 61% ownership of Sky after his initial 39% stake.

“Sky and Comcast are a perfect fit: we are both leaders in creating and distributing content,” Comcast CEO Brian Roberts said in a statement.

Sky provides sports programming, movies and broadband service to 23 million homes across Britain, Ireland, Germany, Italy and Austria.

Notably for home entertainment, Sky’s “Buy & Keep” platform last October began offering consumers of digital movies a Blu-ray copy sent separately in the mail. Sky previously only offered a DVD backup.

Comcast, which owns NBC Universal and DreamWorks Animation, is seeking to outmaneuver The Walt Disney Co., which has a $52 billion offer for select Fox assets, including Sky.

The cable giants contends the acquisition would enhance its entertainment, distribution, and technology prowess domestically, while expanding it international footprint to more effectively compete in the rapidly changing and competitive entertainment and communications landscape.

“We already have a strong presence in London, and Comcast intends to use Sky as a platform for our growth in Europe,” said Roberts.

In a statement, 21st Century Fox said it remained committed to its $15 billion cash offer for the remaining stake in Sky, announced Dec. 15, 2016.

“We note that no firm offer has been made by Comcast at this point. A further statement will be made if appropriate,” Fox said in a statement.

Media reports suggest Roberts is also considering another bid for Fox assets after Comcast’s original $60 billion offer was rejected in favor of Disney’s.

 

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