The Strategist

Comcast to receive more than 75% of Sky shares after buying a stake from Fox


10/04/2018 - 16:39



American cable operator Comcast Corp. will receive more than 75% of the shares of British Sky, after completing a deal to acquire a 39% stake in the company from 21st Century Fox Rupert Murdoch, Comcast said in a statement.



Mike Mozart
Mike Mozart
On October 3, Comcast reached an agreement to buy Sky shares from 21st Century Fox, or about 39.12% of the British company, at £ 17.28 per share.

The total amount of the transaction is 11.63 billion pounds ($ 15.1 billion).

The deal is expected to be closed on October 9, Comcast said in a press release.

Taking into account the deal with Fox, Comcast’s share in Sky will exceed 75%.

At the end of September, Comcast Chairman of the Board of Directors and Executive Director Brian L. Roberts announced victory at the auction. The company surpassed 21st Century Fox and Walt Disney Co in the fight for Sky, the largest pay-TV network in Europe.

According to analysts, Comcast’s decision to increase the offer to 17.28 pounds per share can be explained by the urgent need to scale up to compete with the streaming services of Netflix and Amazon.

Sky will reduce Comcast's dependence on the American market by opening the door to Europe, where paid TV share reaches around 30% and its share continues to grow.

The deal will also turn Comcast into the world's largest paid TV operator with 52 million users and raise non-US revenue to about 20% from 9% in 2017.

source: reuters.com




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