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The shares of Comcast Corp. (CMCSA) slumped Monday in trading after the largest US cable group outperformed rivals Walt Disney Co. (DIS) and 21st Century Fox (FOXA) for the right to acquire the British Sky Plc. (SKYAY) but may struggle to convince shareholders to take advantage of the nearly $ 40 billion offer.
Comcast offered £ 17.28 per Sky share in the third and final auction series of a rare two-day auction organized in London by the OPA panel, a figure that values Sky at over 30.2 billion pounds ($ 39.5 billion). However, with Disney holding a 39% stake in Sky following its $ 71.3 billion takeover by Fox, and activist shareholders such as Elliot Management who can simply keep their investments, Comcast could fully control the biggest pay-TV channel in Europe, despite widespread support from the target.
"It is in the interest of all Sky shareholders to accept the Comcast offer," Sky said Monday. "As a result, Sky's Independent Committee unanimously recommends that Sky's shareholders accept the offer (Comcast) and, in order to secure the closing of the transaction and the possibility of a shareholders to accept immediately. "
Comcast shares were marked by a 2.4% drop in pre-market trading in New York on Monday, indicating an opening price of $ 37.00 each, which would prolong the cumulative gain of the year at around 7.6%. Sky shares, meanwhile, were a good newbie in London, up 8.77% to £ 17.24 each after Saturday's auction.
Comcast's CEO, Britain Roberts, called the victory a "good day" for the Philadelphia-based group, adding that Sky is a "great company with a great platform, a great brand and an accomplished management team."
"This acquisition will enable us to quickly, efficiently and significantly increase our customer base and expand internationally," he added. "We could not be more excited about the opportunities that come our way and we are now encouraging Sky's shareholders to accept our offer, which we look forward to before the end of October 2018."
Fox, however, declined to comment on what it intends to do with its 39% stake in Sky – now valued at $ 15 billion on the basis of the Comcast offering – which will transfer to Disney once its multimedia assets sold at the House of The mouse is closed next year.
Comcast, which owns both the NBC network and Universal Pictures, will also have to convince its existing shareholders that its bid of £ 17.28 per share is more than 125% higher than Sky's prior to its first acquisition. In 2016 – Moody's Investors Service was not within the reach of a group whose mid-level investment level credit rating is A3.
The European media sector is also undergoing major changes as Italy's Mediaset, the country's biggest private broadcaster, hints earlier this month that they are "working on something big and complex," said CEO Pier Silvio Berlusconi. French Vivendi.
Disney / Fox also has the opportunity to retain its stake even though Comcast prevails, a tactic that would allow it to wait for changes in the global streaming and media landscape, especially after the UK's exit from the UK regulations on data confidentiality and media hegemony, both in London and in Brussels.
Disney / Fox, with activists who have recorded solid gains and who play with the house money – Sky has risen 58.3% since the beginning of the year – can not be blamed for wanting see these developments take place before cashing.
Activist investor Crispin Odey, who founded Odey Asset Management, said he thought the auction could reach 18 pounds a share, a price that would value the group at 50 billion pounds ($ 66 billion). ).
The French group Vivendi SA (VIVHY), which owns Universal Music Group and the Canal + pay-TV network, recorded a 1% rise to 22.28 euros each in Paris on Monday. Italian Mediaset, the largest private broadcaster in the country, recorded an increase of 0.5% to 2.64 euros each.
However, Comcast's victory eliminates Disney's plans to roll out a global streaming service for its digital content on its rival Netflix Inc. (NFLX), which unveiled last week a partnership with Sky called "Ultimate on Demand".
Sky has approximately 23 million customers in five European countries, including the UK, and would have been a major launch pad for Disney's international ambitions.
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