Comcast: wins Sky auction with 40 billion dollar bid

(CercleFinance.com) - Comcast has won the bidding to buy British pay-TV company Sky, beating 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 buy Sky shares in the market at a price of 17.28 pounds each, 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 Sky was initially approached by 21st Fox.

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.

London-listed Sky shares were up 8.7% at 17.23 pounds. In New York, while Comcast shares are down 3.6% in pre-market trading.

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