The American pay-TV operator Comcast has pulled the rug out from under Rupert Murdoch's 21st Century Fox to take over Sky by putting in the higher bid in a so-called blind auction on Saturday in the heated competition between the two for the British pay-TV operator Sky, the United Kingdom's Takeover Panel said on Saturday.
Comcast is now offering £17.28 per share for Sky ($40 billion), compared to Fox’s bid of £15.67 per share - 10% more - meaning that Comcast's bid values Sky at £29.7-billion.
Comcast's higher bid for Sky in the take-over race that it entered in February, makes it very likely that Comcast will become the new owner of Sky in the American pay-TV operator's global expansion, pending shareholder approval.
It's also a massive blow and setback for the Murdock family with Rupert Murdock who has tried to get control of all of Sky for close to the past decade.
Sky that has 31 000 employees and around 23 million subscribers in the UK, Ireland, Germany, Austria, Italy, Spain and Switzerland.
Sky has a very strong pay-TV offering tied into distribution and content deals with American TV brands like HBO and Showtime, a ramped up production slate of premium local series it sells internationally, licensing agreements for a collection of the best premium sports rights like the English Premier League (EPL) for another 3 years, and a tie-in agreement with the global streaming giant Netflix.
Interestingly South Africa's MultiChoice - that will be spun-off in the first half of 2019 from parent Naspers - has been closely emulating Sky's operations and services offering the past decade across Africa through its DStv, M-Net and SuperSport brands.
While Comcast that owns NBCUniversal has a large NBCUniversal International Networks office in Central London, Comcast has promised to keep Sky's corporate headquarters at its Osterley campus in West-London.
"This is a great day for Comcast," says Brian Roberts, Comcast CEO in a statement.
"Sky is a wonderful company with a great platform, tremendous brand, and accomplished management team. This acquisition will allow us to quickly, efficiently and meaningfully increase our customer base and expand internationally. We couldn't be more excited by the opportunities in front of us."
Jeremy Darroch, Sky group executive in a statement says "This is the beginning of the next exciting chapter for Sky".
"Brian and his team have built a great business and we are looking forward to bringing our two companies together for the benefit of our customers and colleagues. As part of a broader Comcast we believe we will be able to continue to grow and strengthen our position as Europe’s leading direct to consumer media company."
"Today’s outcome is down to the hard work of tens of thousands of people who have built and developed this business together over the last 30 years. Sky has never stood still, and with Comcast our momentum will only increase."
Martin Gilbert, chairperson of the independent committee of Sky, says "We consider the Comcast offer to be an excellent outcome for Sky shareholders, and we are recommending it as it represents materially superior value."
"We are focused on drawing this process to a successful and swift close and therefore urge shareholders to accept the recommended Comcast offer."
"On behalf of the independent committee of Sky, I wish to congratulate everyone at Sky on creating such a successful company that has attracted strategic interest from one of the world’s greatest media companies."
21st Century Fox in a statement only says "Sky is a remarkable story and we are proud to have played such a significant role in building the incredible value reflected today in Comcast’s offer".
