The takeover of European broadcaster Sky has both action and drama that promises to grab the attention of many an industry watcher.
Media tycoon Rupert Murdoch’s 21st Century Fox was confident that it would bag the Sky deal by the middle of this year. But it got a sucker-punched by Comcast.
The telecom conglomerate gatecrashed the takeover, in an aggressive move, offering over 10% premium on Fox’s $23-billion offer.
The NBC and Universal Studios owner, if successful in grabbing Europe’s leading media company Sky, will considerably expand its international portfolio is clear.
Is Comcast already a winner?
21st Century Fox already owns 39% stake in Sky. And Murdoch’s attempts to own Sky — which he founded in the ‘90s — in full have already seen its share of failure. His initial attempt in 2010 sank due to the phone-hacking scandal at Murdoch’s British news organization News International. Another attempt in 2016 was shelved due to the delay in regulatory scrutiny.
The NBC and Universal Studios owner, if successful in grabbing Europe’s leading media company Sky, will considerably expand its international portfolio is clear.
Another twist unfolded when Disney proposed to acquire a chunk of 21st Century Fox’s business. This proposal even included the 39% stake Fox-owned in Sky. But once this news faded, Comcast jumped to scene expressing its interest in buying a significant portion of Fox’s film and television assets. But several sources hinted at Comcast’s transcendent interest in Fox’s international asset Sky.
And now, with Comcast in the mix, hurdles for Murdoch’s giant have spiked — especially when Comcast does not have to face the media plurality issue that hounds Fox.