SKY IS THE LIMIT. Comcast Makes $31 Billion Bid. Separately, Comcast is weighing whether to play interloper on Fox’s $52.4 billion deal to sell its entertainment assets to Walt Disney Co..By Todd Horwitz, Bubba Trading

 

Comcast has made its offer for Sky official, tabling a $31 billion offer for the European pay-tv giant. Its offer represents a 16% premium to Sky shareholders over the existing bid from 21st Century Fox. Brian L. Roberts, chair and CEO of Comcast Corporation, said: “We are delighted to be formalizing our offer for Sky today. 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. It is led by a terrific management team who we look forward to working with to build and grow this business.”

Comcast is the parent of NBCUniversal and has a large U.S. pay-tv business. It will go head to head with Fox in the battle for European media heavyweight Sky. Fox, meanwhile, is weighing its options. “21CF remains committed to its recommended cash offer for Sky announced on 15th December 2016 and is currently considering its options. A further announcement will be made in due course,” Fox said in statement.

Separately, Comcast is weighing whether to play interloper on Fox’s $52.4 billion deal to sell its entertainment assets to Walt Disney Co., people familiar with the situation say. Comcast is gaming out the possibility of making a public case to Fox’s shareholders that they should reject the Disney deal, which is expected to come to a vote this summer, and opt for a Comcast tie-up instead, people familiar with the situation said. 

Comcast lost out to Disney in December when Fox rejected its bid, which was 16% higher, according to a Fox regulatory filing last week. Fox cited concerns about regulatory risk. The assets in play include Fox’s film and TV studio, cable networks and international properties including Star India and the Sky stake. Comcast may choose to leave the Disney-Fox deal alone, and it doesn’t expect to make a decision in the near term, the people familiar with the situation said.

Comcast’s pursuit of potentially transformative deals comes as the company posted strong first-quarter earnings growth buoyed by its Winter Olympics and Super Bowl broadcasts, which offset its fourth-straight quarter of cable TV subscriber losses. Its shares rose 2.7% Wednesday.

Keep those stops tight
Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial Markets & Political Commentary

 

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Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.