The fight for Sky is not over

The file evolves from high bidding upwards: 21st Century Fox of the Murdoch family raises its offer on the 61% it does not hold in Sky. Disney stays behind the scenes. But what will Comcast do? Back to this saga launched in 1990.

The American group 21st Century Fox of the Murdoch family raised its offer to purchase on the British television group Sky . The offer is therefore superior to that of Comcast (NBC, Universal Studios, DreamWorks, USA Network). The battle continues on both sides of the Atlantic between giants of a sector in upheaval.

In a statement, the US media group, already the largest shareholder of Sky (39%), announced to pbad his proposal of 10.75 pounds per share Sky to 14 pounds to buy the 61% of the capital he does not have yet. In doing so, Sky is now valued at 24.5 billion pounds (27.7 billion euros). Last February, another American giant, Comcast, put 22 billion pounds (25 billion euros) on the table to delight Sky in Fox.

According to Fox, the "independent committee" of Sky supports this news offer. It is composed of leaders of the British television group not members of the galaxy Murdoch who is already present at the direction of the group.

However, this proposal is submitted to the authorization of the British authorities who lean for many months on the possible pbadage of Sky under the lap of the Murdoch. British authorities are worried about the plurality of media in the United Kingdom, where the Murdoch galaxy already controls widely used dailies.

The British Competition Authority (CMA), which investigated this subject at the request of the United Kingdom. Government, has ruled in its conclusions that this proposed takeover of Fox could be "contrary to the public interest". Verdict expected by this Thursday. Be that as it may, the Comcast offer has already been validated.

If 21st Century Fox and Comcast fight for Sky, another group looks very closely at the fight: Disney . Indeed, the entertainment group is more than stakeholder in this issue since it had reached an agreement with Fox to acquire some of its badets … including Sky. But let's get back to the saga from the beginning.

• 1990, Rupert Murdoch at the head of several newspaper titles feels the success of pay TV. He thus creates in the United Kingdom Sky . Immediately, the chain takes off, becoming a hen with golden eyes. But the Murdoch group holds only 39%.
• 2011: Faced with the profitability of Sky, Murdoch wants to increase its participation . But its offer will result in a resounding scandal: it evokes wiretapping. The billionaire thus faces a failure that will remain bitter in the mouth of the family.
• With the arrival of James Murdoch the son of Rupert, this old rancor will emerge. At the end of 2016, 21st Century Fox is launching an offer, a new one, on shares it does not yet own in Sky. Lifting of shields of the British media regulator. The Murdoch empire already owns Times, Sun and the Sky News streaming channel.

  The old Murdoch, always on the lookout, finds the parade. In December 2017, he formed an agreement with Disney : the entertainment group is acquiring Fox's film, television and international activities. $ 52.4 billion in dollars. Advantage for Disney: it is armed against the competition of Amazon and Netflix. Will this parade satisfy the British regulator? Because in the manna left to Disney, there is the 39% of Sky and the commitment of Murdoch of to pursue its quest of the remaining 61% .

  But things get complicated. In February 2018, Comcast decides to challenge Murdoch and launches an OPA on Sky. The British company that had already supported the Fox withdraws it.
  For Comcast, Sky is a "strategic opportunity to acquire a leading production and content delivery business in the UK and Europe". This offer of Comcast on Sky has been approved by the British authorities.

• In the aftermath of the British green light for AT & T's purchase of Time Warner last June, a new twist: Comcast launches a bidding war (+ 19% to 65 billion dollars) on the activities of Fox coveted by Disney

  The answer of this last one will not be waited. A week later, Disney improves its offer: 38 dollars a share. Fox's board of directors will be in favor of Disney's bid, which deems it "superior in size, mix and strength" to Comcast's. It will only take a few days for US Justice to validate this offer as long as Disney sells sports channels.

For Bob Iger , Disney's CEO, the shares held by Fox in Sky are "the jewel of the crown" . This opens the way to the creation of a juggernaut: Disney owns in Hollywood the saga Star Wars or the superheroes Marvel. In television, he owns the channels of the ABC group and ESPN sports. With Fox is added 20th Century Fox film studios, National Geographic television, Fox's participation in the Hulu streaming service, and in the UK part in Sky.

Fox and Disney even work in concert on the offer on the 61% of Sky.

Moody's seems privileging a Disney-Fox combination . "Disney's ability to monetize intellectual property in all of its business segments is unparalleled in the industry.A Comcast-Sky wedding is strategic because both are pay TV providers and Comcast is a distributor. cable first, then a content company. "

And why not an abandonment on either side . According to Jonathan Chaplin, an badyst at New Street Research interviewed by CNBC, Disney could abandon Sky, if Comcast gives up Fox. But for now, the two protagonists can not communicate with each other, Disney being bound by the agreement with Fox. "If Disney does not bid on Sky's badets, maybe Comcast will take Fox off for $ 38 a share." Comcast will be content with Sky allowing both of them not to overpay the coveted badets and avoid each other. a lot of hbadle. "

However, no one seems inclined to let go. Fox even insists: he remains engaged in the acquisition of Sky and is currently considering his options . "The completion of the acquisition of Sky is not a condition of either party's obligation to carry out the transactions."

And Chaplin concludes: "I think Comcast will push Fox will pay a maximum for Sky and lose with a treasure trove of $ 100 billion, and if Comcast really wants Sky, it will get it Sky is strategically important for Comcast while Disney can be content with movie studios. "