Comcast raises offer for Sky as regulatory decision accelerates sales process – Variety

SUN VALLEY, Idaho – Comcast reacted quickly Wednesday to counter 21st Century Fox's latest bid for Sky, bringing its offer to $ 34 billion the same day that Fox has increased its takeover bid for the European TV provider by satellite.

stated that its higher bid was recommended by Sky's independent board of directors, which assesses the whirlwind bid for the broadcaster. Earlier in the day, the same committee had recommended Fox's higher bid, but had retreated after receiving broadcasts from Comcast's top bid.

Comcast's renewed interest in Sky auctions has shaken speculation. Acquire Sky and retreat from his duel with Disney for the main assets of 21st Century Fox. Comcast is vying against Fox for control of Sky, and he is in the middle of a bidding war with Disney for Fox's main assets. These assets include Fox's existing 39% stake in Sky, with the hope that Fox will soon be able to close its Sky takeover to deliver 100% of Sky to Disney or Comcast.

Sky, the question now turns to whether Fox or Disney will respond with a sweet offer for Sky. According to US law, Sky's shareholders now have 60 days to study Comcast's offer and decide whether they agree to the Comcast's public offer. A representative of 21st Century Fox declined to comment.

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The sales process on Sky was accelerated by the decision made earlier this week by the UK regulator that oversees corporate acquisitions. The OPA panel decided that Fox needed to increase the value of his offer because of his theory of the "chain principle" that Disney's offer for Fox is related to Sky. The fact that Disney increased its bid for all of Fox's assets last month means that the value of Fox's current 39% stake in Sky has increased. As a result, Disney's $ 71.3 billion superior bid for Fox means that it has set a floor price for the fair market value of Sky's shareholders

"Comcast has long admired Sky and believes that it is an outstanding company and an excellent relationship with Comcast ". Comcast said by announcing its new Sky offer. "Today's announcement further highlights Comcast's confidence and its commitment to owning Sky."

The offer that Fox made Wednesday values ​​Sky at about $ 32.5 billion, or 14 pounds a share, compared to the latest Comcast bid in April. Comcast's revised offer values ​​Sky at £ 14.75 per share. Comcast has indicated that it expects its public offer to buy Sky shareholders to be closed before the end of October.

The decision of Takeover Panel would have been a surprise for Comcast by speeding up the bidding process for Sky. According to an informed source, Comcast had focused its efforts on assembling another bid for the larger group of 21st Century Fox assets. Disney initially signed an agreement to purchase the bulk of 21st Century Fox on December 14 for $ 52.4 billion. On June 13, Comcast made a $ 65 billion counter-cash offer for Fox. Disney responded on June 20 with its $ 71.3 billion offer approved by the Fox Board of Directors.

Disney and Fox voted on the bid for July 27th. auction for the largest collection of assets Fox. According to a knowledgeable source, Comcast was focused on its options for a higher cash purchase offer for Disney by the July 27 deadline, when the UK regulatory decision forced them to return to Sky with the hope that once British regulators gave OK to Fox to proceed with his most recent offer for Sky, a green light that was expected to arrive at the end of the week. Comcast has already been authorized by the regulators to acquire all or part of Sky.

Comcast CEO Brian Roberts oversees rapid roost developments at Allen & Co.'s annual conference for media and technology moguls, where the guest list includes Disney chef Bob Iger and the president 21st Century Fox Murdoch. The drama surrounding Comcast and the Battle of Disney for Rupert Murdoch's empire was a hot topic of conversation at the meeting. Roberts declined to comment on the auction process of Sky and Fox.

Industry sources said that some of Roberts' lieutenants at Comcast have gradually cooled their zeal to go ahead with Disney's assets for the Fox. fired at the acquisition of control of Sky. Sources said fearing that an all – money offer for Disney 's latest offer for Fox could put Comcast in a difficult spot with heavy debt and other concerns for investors and holders. obligations.

Sky is a popular part of the Fox Empire because of its strength of subscribers in the UK, Ireland, Germany and Italy. Sky is considered a vital infrastructure for consumer direct streaming services that Disney and Comcast seek to develop. Fox's global assets in general are a big part of the appeal for Comcast and Disney, both of which aim to diversify internationally as media and entertainment companies become more global in scope.