Comcast raises offer for Sky after Fox bid

NEW YORK: Comcast raised its bid for pan-European TV group Sky late on Wednesday, topping an offer from 21st Century Fox made only hours earlier and escalating a takeover battle as media giants reposition themselves for the streaming era.

Comcast lifted its bid for Sky to £26 billion (RM138.4 billion) only hours after Rupert Murdoch’s Fox boosted its offer for the 61 per cent of Sky it does not own.

Fox’ latest bid values Sky at £24.5 billion.

The battle for Sky comes as Comcast is also embroiled in a takeover battle with Disney for Fox entertainment assets that are being split off from Murdoch’s empire.

Some analysts have said Comcast could drop its bid for the Fox assets if it wins Sky.

Sky’s jewel in the crown is its live coverage of English Premier League soccer, while the group also provides broadband Internet and telephone services.

Media giants such as Disney and Comcast have been looking to beef up their creative offerings to compete with Netflix and other streaming services that are eroding the value of conventional cable television assets.

The latest back-and-forth started Wednesday morning London time when New York-listed Fox raised its offer to £14 for each outstanding share, up substantially on a previous tilt that was pitched at £10.75.

“As the founding shareholder of Sky, we have remained deeply committed to bringing these two organisations together to create a world-class business positioned to deliver the very best entertainment experiences well into the future,” said Fox.

But only hours later Comcast rebutted the Fox move, releasing a bid after US markets closed of £14.75 per share, about five per cent above the Fox proposal.

Comcast said its sweetened offer has been accepted by Sky independent committee directors.

“Comcast has long admired Sky and believes it is an outstanding company and a great fit with Comcast,” said the company in a statement.