Sky: Comcast wins auction with 40 billion dollar bid

(CercleFinance.com) - Comcast has won an auction to buy British pay-TV company Sky, trumping a rival bid from Rupert Murdoch's 21st Century Fox.


The US cable operator will pay around 40 billion dollars to take full control of the broadcaster, the company said.

Comcast said it intends to acquire Sky shares in the market at a price of 17.28 pounds per share, paid for in cash.

After the offer, Sky's management said the price represents an "excellent outcome" for shareholders, offering a premium of 125% over the closing price of 7.69 pounds on 6 December 2016, the last business day before 21st Fox's initial approach.

Comcast and 21st Century Fox participated in an auction procedure on 22 September.

For the record, 21st Century Fox, which has a 39% stake in Sky, is currently in the process of being bought out by the US entertainment giant Disney.

The London-listed Sky shares were up 8.6% at 17.22 pounds in early-morning trading today.

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