Comcast throws spanner in Fox/walt Disney/sky works
Comment Martin Flanagan
The major consolidation possibilities on the highest slopes of the media/entertainment industry now resemble The Shootout at the OK Corral.
Comcast, the biggest cable operator in America and owner of Universal Pictures and CNBC, yesterday broke cover with its move to gatecrash 21st Century Fox’s attempt to seize control of UK satellite broadcaster, Sky.
Comcast’s possible cash offer for Sky is 16 per cent above the bid approach from 21st Century Fox, owned by Rupert Murdoch, with the media mogul wanting the 61 per cent of Sky that he does not already own.
However, Murdoch – not for the first time – is facing regulatory hurdles, with politicians and regulators concerned about the effect on media plurality in the UK if he gets control of Sky News. His News Corporation business already owns the Times, Sunday Times and the Sun.
Comcast suggested pointedly yesterday that it did not expect similar regulatory complications because of its “minimal presence” in UK media.
However, that’s only the half of it. A fullon battle between Comcast and Fox for Sky also clearly has the potential to complicate Walt Disney’s negotiations to buy Fox’s entertainment assets, including Sky. It is a kalaeidoscope of possibilities. Who will be left standing when the music stops?
Someone said software is eating the world. And it is clear that the latest flurry of major would-be dealmaking has been kickstarted by nervous recognition in the traditional networks that streaming services like Netflix and Amazon are eating their lunch, typfied by the boxset, binge-watching generation.
From the late 1990s telecoms, technology and media became increasingly fused as the pace of technological change grew.
Entertainment is increasingly the new no-man’s-land, up for grabs as viewing habits change. Deep pockets, a desire for some early-mover advantage, and, yes, ego are all components of what we are seeing around Sky and will see in other sector consolidation as the game moves on.