Why Comcast aggressive bid for Sky is actually defensive

Comcast has won the battle for Sky with a £30 billion bid

The US cable TV provider offered £17.28/share for London-based Sky, compared to Fox's £15.67 bid, the UK Takeover Panel said on Saturday.

Had the bid been close, there was speculation that Sky might have recommended the Fox offer to shareholders.

The almost two-year battle for Sky has reshaped the global media-entertainment landscape and put Comcast in pole position to take on emerging online rivals.

US firm Comcast had originally tabled a £26 billion, £14.75 a share bid for Sky, while Fox's offer for the 61% of the United Kingdom broadcaster it does not already own valued it at £24.5 billion at £14 a share. Deep-pocketed firms like Netflix and Amazon have eye-popping budgets and are pouring money into media production and streaming rights. Comcast stock fell 7.4% on the day the company's interest in Sky first became known in late February, with Wall Street surprised by Comcast's sudden focus on global distribution.

"Sky is a wonderful company with a great platform, tremendous brand, and accomplished management team", Brian Roberts, chairman and chief executive of Comcast, said. "I still think it may look a bit cheap in a couple of years".

Ben Barringer, equity analyst at Quilter Cheviot, said: 'We can see why Comcast is attracted to Sky.

The future of Sky has been hanging in the balance for more than eight years.

The Talk: A teary-eyed Julie Chen bids farewell
Sara Gilbert , a co-host and the creator of the show, expressed gratitude to Chen before the conclusion of the broadcast. The reports, at the time, didn't state whether or not Julie will remain as host of Big Brother .

Vikings sign Dan Bailey as kicker
Bailey missed four games last season with a groin injury, but finished 15-of-20 on field goals and 26-of-28 on extra points. Between all the games Sunday, there were nine games that had a missed field goal or failed PAT.

Florence disaster declared in North Carolina as flooding threat grows
Jeff Pyron, left, and Daniel Lilly cover Lilly's roof after Hurricane Florence hit Davis N.C., Saturday, Sept. 15, 2018. Along the Lumber River in Lumberton, workers used heavy machinery to dump extra sand on a railbed prone to flooding.

Sky also has original TV productions, such as the 1920s sex-and-crime saga "Babylon Berlin" and "Britannia", a period drama about the Roman conquest of Britain. That may have been an astute move by Iger, with Fox's 39 percent stake in Sky now worth much more.

Buying Sky will make Philadephia-based Comcast, which owns the NBC network and Universal Pictures, the world's largest pay-TV operator with around 52 million customers.

Buying Sky would mean Comcast generates a quarter of its sales outside of the U.S., up from 9% now. While Comcast acquired NBCUniversal and DreamWorks Animation over the past decade, it failed in attempts to buy Disney in 2004, Time Warner Cable in 2015 and Fox in July.

Since then, Fox has agreed to sell most of its entertainment assets to Disney.

Disney's $71 billion deal for Fox brought it franchises such as the "X-Men" and hit shows like "The Simpsons".

Philadelphia-based Comcast won a 24-hour auction conducted on Saturday.

.

"Sky is a remarkable story and we are proud to have played such a significant role in building the incredible value reflected today in Comcast's offer", the company said.

Related news:

loading...

Hot News

isis-killer-beheading-video-story-top Southampton short on strikers for Liverpool match
Sep 22, 2018 - 02:21
If you create these chances, you'll make mistakes. "He had, for sure, moments like this, but he's such a positive [person]. It wasn't like he finished last season, but he needed time last year and he will take time this year.

isis-killer-beheading-video-story-top The Browns won so now those beer fridges are open
Sep 22, 2018 - 02:06
Fans of the Cleveland Browns were able to celebrate their first win since 2016 with free beer Thursday night. Landry was a major beneficiary of Mayfield's entrance, catching eight passes for 103 yards for the game.

isis-killer-beheading-video-story-top Apple Fans Line Up For Most Expensive iPhone Yet
Sep 22, 2018 - 02:03
To pre-order one of the variants of the iPhone XS or iPhone XS Max from Flipkart, head here . The iPhone XS Max , Apple's largest smartphone to date, also comes in the same capacities.

Stephen Jackson, Andrew Wiggins feud over Jimmy Butler
Sep 21, 2018 - 02:47
Wiggins , meanwhile, has been said to be bothered by being relegated to the team's third offensive option behind Butler and Towns. With everything that is going on surrounding him, it will be inevitable to see him with a new team possibly sooner than later.

isis-killer-beheading-video-story-top Trump Urged Spain to Build Wall Across Sahara
Sep 21, 2018 - 02:30
Trump's plan for a border wall along the US-Mexico border has encountered many obstacles in US Congress. Trump and his wall promise has sparked a concern since his United States election campaign in 2016.

isis-killer-beheading-video-story-top Outside groups dig in as allegation roils Kavanaugh nomination
Sep 20, 2018 - 01:08
If that timetable slips, it would become increasingly hard for Republicans to schedule a vote before the November 6 elections. The Democratic members of the committee are reportedly not planning on being in attendance to participate.

isis-killer-beheading-video-story-top Barcelona’s likely eleven to start the Champions League quest
Sep 19, 2018 - 00:27
My first job is to make plays in the midfield, in the middle it's more hard as I have to hold on to the ball and help my teammates.

isis-killer-beheading-video-story-top Packers star Aaron Rodgers reacts to Vikings tie, gives injury update
Sep 18, 2018 - 01:53
Daniel Carlson missed both field goal attempts, however, and the Vikings had to settle for a 29-29 tie at Lambeau Field. You let me know. "And he says, 'I love you, too.' ..." And to call it at that point in the game is just unbelievable.

isis-killer-beheading-video-story-top Tom Arnold files police report after Mark Burnett altercation
Sep 18, 2018 - 01:49
Arnold has been working on a show for Vice. a show about so-called "hidden Trump tapes". "We gotta protect this brutal angel". During the press tour for his Viceland show, Arnold has repeatedly said that Burnett knows the tapes exist .

isis-killer-beheading-video-story-top Chelsea fans lionise Eden Hazard as he becomes clubs tenth highest scorer
Sep 18, 2018 - 01:46
The win pushed the Blues to the top of the table and extended their flawless start to the campaign to five matches. Hazard's manager Maurizio Sarri thinks that the Belgian star's goal-scoring exploits can continue.

isis-killer-beheading-video-story-top Kenyan Kipchoge Smashes Marathon World Record
Sep 17, 2018 - 00:42
That 10km time was 23 seconds faster than Dennis Kimetto's world record pace, but Kimetto ran an incredibly fast second half. The gold medal victor from the 2016 Rio Olympics cemented his status as one of the all-time greats with his remarkable run.

isis-killer-beheading-video-story-top Mourinho does not fake emotions - Lukaku
Sep 16, 2018 - 18:29
United did manage to settle, however, and ultimately capitalised on De Gea's heroics with two quickfire goals late in the half. This kind of opponent, this kind of stadium, the way they normally play is very direct, very physical.

isis-killer-beheading-video-story-top Apple Watch 4 with built-in ECG officially unveiled
Sep 15, 2018 - 01:51
Apple has just announced the iPhone XS and XS MAX, a new generation of iPhones that brings iPhone photographer to the next level. Apple is calling this the Liquid Retina display , and it has bezels slightly thicker than the iPhone Xs and Xs Max.

isis-killer-beheading-video-story-top Gary Cohn Waffles on Bob Woodward Book
Sep 14, 2018 - 00:35
Donald Trump has the IQ of an "inbred tanning bed", according to the president's former chief economic advisor, Gary Cohn . The White House and some officials named in the book have attacked Woodward , taking aim at his credibility.

isis-killer-beheading-video-story-top Lexus wants drivers to see better with digital side mirrors
Sep 14, 2018 - 00:35
Whenever the driver uses the car's indicators or engages reverse "the system automatically enhances the corresponding area". Essentially, the side mirrors are cameras, and the live feed is displayed on left and right screens inside the cabin.