It looks like the next throwdown between Comcast and Disney will be for Sky, the European satellite broadcasting giant.
From the New York Times…
The Philadelphia-based Comcast increased its offer for Sky on Wednesday, valuing the satellite broadcaster at $34 billion, or 26 billion pounds. That topped a bid from 21st Century Fox, Rupert Murdoch’s media empire, that came earlier in the day. Fox’s offer valued Sky at about $32.5 billion. Sky’s independent board had already recommended Comcast’s new terms.
But Sky is just one element in a larger, complex corporate showdown. The latest move escalates a war between rival media companies being waged across two continents and involving two different transactions exceeding $100 billion in value in total.
Both the Walt Disney Company and Comcast have bid to buy most of Fox’s entertainment assets, including Sky and another growing international business, Star India, which would help increase their global reach. Now, Comcast is unlikely to continue pursuing Fox and will instead concentrate its efforts on acquiring Sky, the people familiar with the process said.
It would appear that Comcast is no longer chasing the Fox media assets, but is instead going after Sky, which Fox owns a 39% stake in.
From the Wall Street Journal…
Comcast raised its offer for Sky to £14.75 per share, valuing the company at $34 billion. That is a 5% premium to an offer Fox announced earlier Wednesday and 18% above Comcast’s earlier bid. Comcast said its latest offer was recommended by Sky’s independent directors.
Fox already owns 39% of Sky and is vying to consolidate ownership. Earlier Wednesday, Fox lifted its bid to purchase the rest of the company by more than 30% to £14-a-share, valuing Sky at $32.5 billion.
Disney is still in the lead to win the Fox media assets, including 21st Century Fox, with a $71 million bid. Sky, however, is being treated as a separate asset.
It’s clear that streaming is the future of television. Both Disney and Comcast are scrambling to secure their place in it in light of the rise of newcomers like Netflix and Amazon.
It’ll be interesting to see how this all plays out.
Stay tuned to The Kingdom Insider for more on the Disney-Fox merger as it unfolds.
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