Comcast confirmed this (Tuesday) morning that it has submitted a new offer for Sky, the European broadcaster operated by rival media company 21st Century Fox, despite the latter having agreed a broader deal with Walt Disney late last year.
In December, Walt Disney announced a $52.4bn (€44.2bn) deal to acquire a significant share of 21st Century Fox’s business interests in an agreement that would ultimately lead to it securing control of European pay-television group Sky and media company Star India.
However, Comcast said today that it had tabled a “superior cash proposal” of £12.50 (€14.17/$17.47) per share for Sky alone, representing a 16-per-cent increase in value over the existing 21st Century Fox offer for Sky. The offer would value Sky at $31bn.
“We think Sky is an outstanding company,” Comcast chairman and chief executive Brian Roberts said. “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.
“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 nine per cent to 25 per cent of company revenues.”
It has previously been reported that Comcast’s renewed interest in Sky could force Walt Disney to increase its offer.
Comcast’s original bid of more than $60bn late last year for a number of Fox's business assets was rejected due to reported concerns that regulators would block the deal. However, it has been suggested by some observers that by carving Sky out of a broader deal, the takeover would have more chance of succeeding.
Sky is a major sports broadcaster in Europe and is the primary domestic rights-holder of football’s English Premier League in the UK.