Comcast, the owner of NBCUniversal has made an offer for Sky, the European media company. The company is currently partially owned by 21st Century Fox and they are attempting to purchase the remaining part of the business that they do not own. If successful, the business could be a part of The Walt Disney Company if their acquisition of 21st Century Fox goes through.
Comcast’s announcement of a cash proposal of £12.50 per share represents a 16% increase
in value over the existing 21st Century Fox offer for Sky. Comcast’s proposal implies an
equity value of $31bn (£22bn) for Sky.
Bob Iger recently pointed to Sky as one of 21st Century Fox’s assets that made the deal attractive to Disney. The Sky-Fox deal is currently under regulatory review due to concerns that the transaction could give the Murdoch family too much control of media in the United Kingdom. The regulatory agency stated that if Disney acquired the business it would assuage those concerns.
“We think Sky is an outstanding company. It has 23 million customers and leading positions in the UK, Italy, and Germany. Sky has been a consistent innovator in its use of technology to deliver a fantastic viewing experience and has a proud record of investment in news and programming. It has great people and a very strong and capable management team,” said Brian L. Roberts, Chairman and CEO of Comcast Corporation.
Roberts added, “Comcast intends to use Sky as a platform for growth in Europe. We already have a strong presence in London through our NBCUniversal international operations, and we intend to maintain Sky’s UK headquarters. Adding Sky to the Comcast family of businesses will increase our international revenues from 9% to 25% of Company revenues.”
Sky nor Fox or Disney has commented on the offer as of yet.