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Twenty-First Century Fox has agreed to sell its 39% stake in Britain's Sky to Comcast on Wednesday for $ 15 billion, putting an end to Rupert Murdoch's ambition.
Mr. Murdoch, Executive Co-President of 21st Century Fox, sold most of his empire to the Walt Disney Company this summer. The proceeds from the Sky sale will be donated to Disney, which plans to invest this money in its latest effort to sell its content directly to viewers via streaming services.
"We are proud of the role our company has played in building Sky and the exceptional value we have offered to shareholders of 21CF and Sky, as well as to their European customers," said Fox in a statement congratulating Comcast.
Comcast, led by Brian L. Roberts, defeated Murdoch at a one-day auction for Sky last weekend. The Philadelphia-based cable operator offered £ 17.28 per share, while Fox, a Disney bidder, offered £ 15.67. Comcast's offering puts the total value of Sky at around $ 39 billion.
The decision to sell Fox's stake in Sky was largely the responsibility of Disney's general manager, Robert A. Iger, who could have pressured Roberts if he refused to pay the shares. Comcast needs more than 50% of Sky's capital to complete its offer.
Disney had actively pursued Sky, with Mr Iger calling the UK company a "jewel" of the Murdoch empire and describing his direct relationship with tens of millions of customers in Europe to speed up the introduction of Disney brand streaming services. Disney also wanted to keep Sky out of the hands of one of its biggest competitors.
With the sale of Sky's stake and the mandatory divestitures of 22 Fox-owned regional sports networks, Disney will receive approximately $ 30 billion to repay the debt related to its $ 71.3 billion purchase of Fox and invest in its marketing efforts. diffusion.
The rivalry between Mr. Roberts and Mr. Iger goes back years, but it peaked in June when Comcast exceeded Disney's initial offering for most of Mr. Murdoch's empire. This forced Iger to pay about $ 18 billion more than expected to secure Fox's assets. Then, on Saturday, Comcast appeared as the decisive winner in a battle with Disney for control of the British pay-TV company Sky.
Disney's agreement to sell its stake in Sky raises the possibility that Comcast is willing to enter into a separate transaction with the Hulu streaming service. Disney is expected to own about 60% of this service after closing the deal for Fox, but Comcast will remain a minority shareholder with 30%. Hulu has more than 20 million subscribers and is a key part of Iger's strategy to sell Disney shows and movies directly to consumers.
But British takeover laws forbid any deal involving Hulu to be contingent on Sky's maneuver. So a transaction for Hulu should be done independently.
In Sky, Comcast is one of Europe's largest media companies, with nearly 23 million customers in five countries, including Great Britain, Germany and Italy. For British viewers accustomed to living in a media world dominated by the Murdoch family for a long time, Comcast's potential takeover shows a significant change in ownership.
The Murdoch fought for control of Sky for much of the decade. Mr. Murdoch, 87, co-founded the satellite television company in 1989 to compete with the British Broadcasting Corporation. Sky, which has 31,000 employees and generated $ 17 billion in sales last year, is one of the most popular TV brands in Europe. She creates original programs, manages an influential news channel and has exclusive partnerships in Europe with HBO, Showtime and Warner Bros.
In the end, Disney managed to save face. Comcast shares fell 6% on Monday, the first day after the release of the Sky auction results, analysts have criticized Comcast for what is called "a sudden surge." Disney shares rose 2%.
"Rather than paying such a premium, Disney can now receive this bonus," Sanford C. Bernstein analyst Todd Juenger writes in a research report. "The outcome of the bid for Sky was, in our opinion, the best possible result for Disney."
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