Comcast "emerged as the winner of an extraordinary battle for control of Sky" after it defeated the combined forces of 21st Century Fox and Disney in an "extraordinary" 24-hour auction, according to Christopher Williams of the London TELEGRAPH. The "colossus" of the U.S. cable industry, which also owns Hollywood studio Universal and broadcaster NBC, made a blind bid of £17.28 ($22.59) per share for Sky, valuing the company at nearly £30B ($39.2B). Comcast "came out comfortably ahead of Fox," which was "effectively controlled" in the 24-hour sale by Disney, which agreed to buy most of Fox, including its 39% stake in Sky, in a separate $71B deal. At the 5pm deadline, Sky’s biggest shareholder made a final offer of £15.67 ($20.49) per share, less than the market value going into the auction. The "highly unusual process" to settle the takeover battle was overseen by the Takeover Panel, the City's merger regulator. The Fox bid fell about £2.8B ($3.6B) short of Comcast's, which represents 15.5 times Sky's adjusted earnings (TELEGRAPH, 9/22). In London, Collingridge & Shah reported the takeover "catapults" Comcast, run by Brian Roberts, on to the global stage, giving it a European platform and a "wealth of sports content" including rights to show Premier League football matches. Sky investors must tender their shares by Oct. 11. Roberts said that it was a "great day" for Comcast and urged Sky shareholders to accept its offer. He said, "Sky is a wonderful company with a great platform, tremendous brand and accomplished management team." The mergers regulator decided on the blind auction -- which kicked off on Friday at 5pm -- "after a protracted but inconclusive tussle for Sky" (SUNDAY TIMES, 9/23).
THE NEXT CHAPTER: The BBC reported Sky CEO Jeremy Darroch said that it was the "beginning of the next exciting chapter for Sky." He added, "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." In a statement, Fox said that it was "considering its options" for the 39% shareholding it currently has in Sky. It added, "We are proud to have played such a significant role in building the incredible value reflected today in Comcast's offer" (BBC, 9/23). In London, Jim Waterson reported the auction of Sky "involved a certain amount of game theory on both sides." Fox’s decision to take part in the "secretive process" may have forced Comcast to "table a knockout bid to ensure victory" -- meaning Fox "will in turn receive an increased sum for the 39% stake it already owns." There is also an "element of revenge" after Comcast was beaten by Disney earlier this year in the battle for Fox’s U.S. entertainment business (GUARDIAN, 9/22).
