Sky News

UK regulator, The Takeover Panel, has announced details of the auction that will take place that will settle if Fox or Comcast will buy European communications and entertainment provider Sky.

  • The auction will begin on September 21 at 5pm London Time (9am Pacific Time)
  • The auction will last a maximum of three rounds
  • On the first round, Fox (in concert with Disney), can make an increased bid
  • In the second round, Comcast can make an increased bid, even if Fox does not increase their bid.
  • If the auction goes to a third round, both Comcast and Fox can make an increased bid
  • Both Comcast and Fox can only make an offer in a fixed cash price (in pounds sterling). No other forms of compensation, such as stock, are allowed
  • After the auction is complete, the Takeover Panel will announce the prices offered by both Comcast and Fox.
  • Comcast and Fox must make an announcement regarding their bids by the morning of September 24 (London Time)
  • An offer document must be made before September 27, 2018
  • October 11, 2018 is the last day the offers can become or can be declared unconditional as to acceptances.
  • It is possible, the auction could end with both Comcast and Fox offering the same price
  • Sky, Comcast, Fox, and The Walt Disney Company have agreed to the terms of the auction

Things to Remember:

  • Disney will own the 39 percent of Sky which Fox already owns, regardless of the auction results
  • Fox must get approval from Disney for any increased offer
  • Bob Iger has called Sky “a crown jewel” of 21st Century Fox

How We Got Here:

  • December 15, 2016: Fox announced its intention to purchase the shares of Sky it did not own at a price of 10.75 pounds. This deal was held up by regulatory concerns regarding Sky News and the Murdoch Family
  • February 27, 2018: Comcast announced it was considering a bid for Sky
  • April 25, 2018: Comcast announced an offer of 12.50 pounds per share
  • July 11, 2018: Fox announced an offer of 14 pounds per share. Later that same day, Comcast increased their bid to 14.75 pounds per share
 
 

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