Comcast Announces A Surprise Offer For Sky TV
- Comcast to offer $30.7 billion for Sky.
- The offer will spell trouble for the dealings made between Disney and Fox.
- Comcast chief executive, Brian Roberts, argues that Sky will be a fruitful acquisition, considering the current market scenario.
On February 27, Comcast announced that they would make a $30.7 billion offer for Sky - a UK based telecommunications company. This offer has the potential to disrupt Disney’s foreplanned purchase of much of 21st Century Fox, that was fixed at $66 billion.
Fox currently holds 39% of Sky and is prying for the remaining 61%. They plan to hand over Sky to Disney once its acquisition is completed. However, Comcast's meddling in the current matter is raising questions - as to what might be the motive involved?
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Brian Roberts, the chief executive of Comcast, had previously tried to outbid Disney to get Fox’s assets. His endeavors failed once Rupert Murdoch, Chairman of Fox neglected his efforts. But now, through Sky, Mr. Roberts might have intentions for making an even more hostile bid to tackle Disney’s.
However, Mr. Roberts is of the opinion that his actions are totally logical in reference to Sky being “much more than a satellite broadcaster.” He argues that, much like the acquisition of NBCUniversal back in 2011, Sky will prove to be beneficial as it operates TV networks, produces original shows, and also holds sports rights in key markets.
Also, “Operationally we do very similar things” adds Mr. Roberts, and that Comcast and Sky will be a good fit in the current market with competitions such as Amazon and Netflix. And since Sky already has a Netflix-like app, Now TV, it will surely help with the current cord-cutting trends.
Despite Mr. Roberts arguments, Comcast investors strongly disagree and would prefer if Comcast would focus on buying back some of its shares. But one should not overlook the current scenario in reference to Sky. The company has gained 5% in revenue growth over the last six months of 2017. Also, in February Sky secured rights to the Premier League football for the next three years.