Comcast make formal bid for Sky Plc
Sky shares on the rise amid intense takeover talks
by Abi Moses on 25th April, 2018 if ($blog_item->blog_updated_date != '0000-00-00 00:00:00'): ?> and updated 30th November, -0001 12:00am endif; ?>
Sky Plc shares have risen 3.63% to £1,355.50 today after US cable TV giant, Comcast, made a formal bid to acquire the UK broadcaster.
The bid, a huge £22 billion, values the company at £12.50 per share and eclipses the recent £19 billion bid from 21st Century Fox. The Fox bid, valued at £10.75 per share, would've seen Rupert Murdoch's firm acquire the 61% they do not currently own, allowing the media tycoon to take full control of Sky Plc.
Sky have confirmed their recommendation for the 21st Century Fox bid has been withdrawn amid the latest, improved offer from Comcast.
Who are Comcast?
Founded in Mississippi in 1963, Comcast are the world's largest broadcasting and cable TV company by revenue. The global telecommunications conglomerate are the current owners of the NBC TV network, Universal Pictures and Universal Parks and Resorts in Los Angeles and Orlando in the US and Osaka in Japan.
Comcast CEO, Brian Roberts, said:
"We have long believed Sky is an outstanding company and a great fit with Comcast. Sky has a strong business, excellent customer loyalty and a valued brand."
George Salmon, an analyst at Hargreaves Lansdown, believes the Comcast bid could trigger a bidding war between them and 21st Century Fox. Salmon explained, "Part of the reason the value of the deal is significantly higher than what Fox originally put forward is that Sky has since secured three more years of rights to Premier League football at a reduced cost. As far as the value of Sky goes, that's a game-changer. Sky has proven the Premier League deals are well worth the outlay. The group looks on course to deliver operating profits of £1.5 billion this year, double what it earned ten years ago."
Here at Spread Betting we will keep you up to date on the latest news regarding any proposed takeover of Sky Plc. Register with one of our affiliate brokers and start trading a variety of stocks on their platform.