Comcast's $31 Billion Bid for Sky Could Crush Rupert Murdoch's Dreams

Comcast's $31 Billion Bid for Sky Could Crush Rupert Murdoch's Dreams

United Kingdom regulators have balked at allowing Fox to gain total control of Sky so that's where we are at this point.

Comcast announced that they have put in a superior cash offer of approximately £12.50 per share for a total of £22.0 billion, or almost United States $30.6 million. Comcast's $31 billion offer for United Kingdom satellite broadcaster Sky just about passes financial muster.

The American cable television giant's £12.50-a-share bid represents a premium of 16 per cent on Fox's £10.75-a-share offer for the pay-TV broadcaster.

"Comcast believes that, combined, Comcast and Sky will create a business equipped to compete more effectively in a rapidly changing and highly competitive industry", the company said.

Sky's shares raced 4% higher as the move by Comcast sets the stage for a possible bidding war for Sky.

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He added: "We also understand the role that Sky plays in United Kingdom society and in its customers' lives and we are determined to be responsible and trusted owners of Sky". "We have long believed Sky is an outstanding company and a great fit with Comcast".

It said it would expect the deal to complete before the end of 2018.

But Comcast isn't just wooing Sky shareholders.

On Wednesday's earning call with investors Roberts said that Comcast loves its position of being both an owner and distributor of content and is impressed by continued momentum in Sky's business, which is a company that looks very similar to Comcast.

Sky withdrew its recommendation for the Fox deal following Comcast's offer, but stressed that both bids are "subject to pre-conditions and neither offer is now capable of being put to shareholders".

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And in a bid to head off any competition concerns, the group said it would vow not to acquire any majority stake in any United Kingdom newspapers for five years. The stock closed up nearly 4 percent at £13.59. Sky has a strong business, excellent customer loyalty, and a valued brand.

Comcast stock rose 3% TO $34.34, while 21CF rose 2% to $36.78 in USA trading.

Whether Sky goes for it is the next question.

Comcast would love to expand its base to Europe and also have control of Sky Sports which has rights to the English Premier League, Formula 1, golf and other events. It will also establish a Sky News editorial board to ensure the channel's independence, keep the United Kingdom headquarters in Osterley for five years and not acquire any majority interest in British newspapers for five years.

Fox issued a statement saying it remains committed to its offer and is "currently considering its options".

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Comcast, which owns cable channels MSNBC and CNBC, argues its approach would escape concerns over media plurality because of its "minimal presence" in United Kingdom media.

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