Comcast Wins Sky Auction

Comcast Corporation has outbid 21st Century Fox to take control of Sky, valuing the company at $39 billion.

The U.K. Takeover Panel announced that Comcast won the auction for the European pay-TV giant with a £17.28 per share offer, outbidding Fox’s £15.67 per share price. A new formal proposal to Sky must be made this week, and the board has until October 11 to accept the deal.

Comcast first made an offer to acquire Sky in February of this year for £12.50 per share. After 21st Century Fox countered, Comcast increased its offer price to £14.75 per share. The U.K. Takeover Panel subsequently set plans for today’s auction.

At the time of the initial Sky offer, Brian L. Roberts, the chairman and CEO of Comcast Corporation, commented, “We think Sky is an outstanding company. It has 23 million customers and leading positions in the U.K., 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.”

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 U.K. headquarters. Adding Sky to the Comcast family of businesses will increase our international revenues from 9 percent to 25 percent of company revenues.”

21st Century Fox commented: “We note the increased cash offer for the fully diluted share capital of Sky by Comcast, and that it has been recommended by the independent committee of Sky. 21CF is considering its options regarding its own 39 percent shareholding in Sky and will make a further announcement in due course. Sky is a remarkable story and we are proud to have played such a significant role in building the incredible value reflected today in Comcast’s offer.”