Sky’s the limit
Cable giant’s £22bn bid trumps Murdoch
A BATTLE for Sky broke out yesterday after the world’s biggest cable TV firm launched a shock £22billion takeover bid.
Comcast’s offer trumps media mogul Rupert Murdoch’s attempt to seize control of the satellite giant.
Analysts say the surprise move could lead to a counterbid from Murdoch’s 21st Century Fox, or others.
While Comcast isn’t a household name in the UK, the American firm is a £180billion powerhouse. It owns big-screen players from film giant Universal Pictures and Shrek maker Dreamworks Animation to TV channel NBC and the production company behind period drama Downton Abbey.
Its £12.50-a-share offer is worth 16% more than Murdoch’s. Comcast bosses need to convince just over 50% of Sky investors to sell, meaning it can do without Murdoch’s 39% stake.
The firm also reckons regulators will back its offer over Murdoch’s, which is bogged down in red tape because of his existing control over the UK media.
The situation is further complicated by Murdoch agreeing since his last offer to sell a big chunk of his empire to Disney. That would theoretically include his stake in Sky.
Laith Khalaf, analyst at broker Hargreaves Lansdown, said Comcast had “gazumped” 21st Century Fox.
Neil Campling, technology expert at Mirabaud Securities, said: “This bid marks a floor, not an end, to this particular saga. Let the battle commence.”
Comcast’s offer would create a global goliath with 52million subscribers, including Sky’s 23m customers in the UK and Europe.
“Viewers will get higher quality content,” insisted Comcast boss Brian Roberts, who revealed he was convinced to bid for Sky after chatting with a cab driver while visiting London last November.
He predicted a “clear path” to regulatory approval and insisted the UK was a great place to do business, despite Brexit looming.
Analysts said Sky’s renewal of Premier League football rights fuelled yesterday’s approach.
Fox said it “remains committed” to its offer, adding: “We note that no firm offer has been made by Comcast as this point.”