Comcast and Fox deliver $ 34 billion to Britain

LONDON (Reuters) – Comcast (CMCSA.O) and the twenty-first century Fox (FOXA.O) face a quick bid for the British Sky channel (SKYB.LSaturday after none of the two parties pulled out in a $ 34 billion battle.

A deadline for the US cable giant Comcast and Rupert Murdoch's Fox to declare that their all cash offers for Sky would not be increased on Friday, without any decision from both sides, triggering a rare auction.

Fox, who has the support of partner Walt Disney (DIS.N), and Comcast are competing for control of Sky to strengthen their businesses in the face of rapidly growing streaming services such as Netflix (NFLX.O), which is transforming the media industry.

The Saturday auction of the pay TV group Sky will last a maximum of three laps and any offer will be made in private by phone or email, a source familiar with the process.

The OPA committee hopes to announce the bids offered by the bidders on Saturday evening.

Sky's independent directors, who have so far recommended investors to support a 14.75-pound bid by Comcast, which rates the broadcaster at 25.9 billion pounds ($ 34 billion), should meet immediately to decide of the offer to support.

Comcast and Fox could end up making the same offers.

London-based pay TV shares rose 0.3% to 15.85 pounds on Friday, before the apotheosis of two endless and protracted fights for both Fox and Sky, which will reshape the entertainment industry.

"This will most likely mark the end of a process we've been managing for almost two years," Sky CEO Jeremy Darroch said on a staff note Thursday.

(GRAPHIC: Battle for Sky Plc – reut.rs/2zmdFup)

Fox, which already holds a 39% stake in Sky, initially offered £ 10.75 per share for the rest of the broadcaster in December 2016, but its takeover was delayed by a lengthy regulatory review of the company. Proposed agreement in the United Kingdom.

The acquisition was further complicated by a separate agreement signed by Disney in December 2017 to acquire a host of Fox film and television assets, including its stake in Sky.

Comcast then spoiled the two deals, forcing Disney to increase its offering on Fox's assets to about $ 71 billion in June and Fox to increase its Sky offering to 14 pounds per share in July.

While Comcast responded by immediately increasing its Sky offering to 14.75 pounds per share versus 12.50 pounds, it dropped its attempt to acquire Fox's assets on July 19th.

The British takeover group announced the auction on Thursday to end Sky's clash and force Comcast and Fox to unveil their best deals.

The shareholders of the British Broadcasting Group will have about a fortnight to decide which of the two at the end of the auction.

Fox's 39% stake in Sky could become an important factor in determining which contender ultimately wins control after the auction if competitors make similar offers.

Fox has set its acceptance threshold for a transaction to 75% of Sky's minority shareholders, but has the option of reducing it and seeking a simple majority of all Sky shares, which is Comcast's goal.

The participation of Fox's Sky would put him in a better position than Comcast to cross the threshold of 50%.

A Fox win would allow Disney to take control of Sky once it has agreed to Fox's assets.