Being the lower bidder, Fox is expected to make the first bid, sticking to its earlier offer price of GBP14 per share
Meanwhile, speculations are rife that Comcast would come out victorious with a clear lead. Disney (DIS), which owns majority stake in Fox, will be playing a key role in the entire process by calling the shots with regard to the latter’s offer price. Fox already owns a 39% stake in Sky, which gives the Rupert Murdoch-owned company an advantage over the rival bidder.
Though the odds are in favor of Comcast when the battle for Sky – which is reminiscent of the recent takeover war in which Disney outbid Comcast to buy the assets of Fox – enters the climax, it will not be a cakewalk for the Pennsylvania-based company. In all probability, Sky will continue to be a standalone entity, irrespective of its new owner.
Hulu and Fox: What lies ahead as they enter the Disney family?
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There are multiple factors that make Sky a coveted buyout target, especially for an American peer. With more than 20 million subscribed users and a network covering the whole of Europe, Sky offers a unique opportunity to access the lucrative market. Besides holding the rights to stream some popular football matches, Sky runs its own cable TV channel that drives useful feedback from viewers.
Comcast’s stock, which is on the recovery mode after slipping from the peak reached in January this year, made moderate gains Friday. Meanwhile, Fox remained in the red throughout the session, extending the recent losing streak.