Comcast makes $40B bid for Sky UK

US cable TV giant Comcast has made a $A40B bid for UK Pay TV group Sky, in a move which threatens Rupert Murdoch’s attempts to take control

Comcast is the biggest US cable TV firm, owns NBCUniversal, Universal Pictures and its subsidiary Dreamworks Animation plus internet and phone services.

After the new Comcast move, Sky said it was withdrawing its recommendation for the FOX bid.

“The Independent Committee of Sky welcomes today’s announcement by Comcast of its firm intention to make a £12.50 per share pre-conditional cash offer for Sky,” it said.

“As a result of the announcement of this higher cash offer, the Independent Committee is withdrawing its recommendation of the offer announced by 21st Century Fox on 15 December 2016 and is now terminating the co-operation agreement entered into with 21st Century Fox on the same date.”

“We are delighted to be formalising our offer for Sky today,” said Comcast chief executive Brian Roberts.

“We have long believed Sky is an outstanding company and a great fit with Comcast. Sky has a strong business, excellent customer loyalty, and a valued brand. It is led by a terrific management team who we look forward to working with to build and grow this business.”

FOX already owns 39% of Sky and made a bid for full control in December. Comcast is now seeking to buy the other 61%.

But the contest between FOX and Comcast has been complicated by a $52.4 billion offer from Disney last year to swallow most of Fox, including its existing stake in Sky.

Comcast matched a FOX commitment to keep funding the Sky News operation at the current level for at least a decade. Comcast also committed to an editorial board for Sky News for the same period, and to maintain Sky’s west London campus for five years.

In January, a UK regulator advised that the government should block the Fox bid to buy the remaining 61% of Sky because it would give Murdoch too much control over media in Britain.

Source: BBC, Variety, CNN