Comcast parries Rupert Murdoch's Sky bid with £26bn offer

Comcast

Comcast knows it will likely need to divest Fox's regional sports networks if it wants to buy the company's assets

During its review process, Comcast took the opportunity to place a $60 billion bid for Fox in May, countering Disney's previous $52.4 million offer.

Fox made the new offer in an attempt to outbid its rival Comcast, which has offered Sky £12.5 (Rs. 1,139) per share, CNBC reported.

"Today, 21CF and the Independent Committee of Sky are pleased to announce that they have reached agreement on an increased. cash offer", a statement said on Wednesday.

Echoing an earlier report, now it may be likely that Comcast has given up on trying to acquire Fox Studios, which means Disney will get the rights back to the X-Men, Wolverine, Deadpool, Fantastic Four and related characters.

Disney secured conditional U.S. approval to buy the assets last month, giving it an edge over Comcast's bid.

"We have long admired Sky, which we believe is an outstanding company and a great fit with Comcast".

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Its offer represents an 82 percent premium to Sky's shares in 2016 before the takeover drama started, and a multiple of 21 times 2017 earnings per share.

The speed with which Comcast's Brian Roberts returned with a higher offer was created to show how determined he is to buy the group which is present in 23 million homes across Europe.

What's Next For the Disney-Fox Deal?

The regulatory boost comes less than 24 hours after Comcast upped its offer for Sky, hours after 21st Century boosted its own bid. According to some shareholders, that has set an implied higher floor for Sky's shares. Comcast now has a 60-day window before Sky shareholders can vote to approve the deal.

The clock was ticking on Fox to make a higher bid for Sky, because Comcast faces a deadline of Friday to formally deliver its offer documents to shareholders of the London-based company, under United Kingdom takeover rules.

KitGuru Says: No matter who ends up getting their hands on Fox's assets, the loss of competition from such a large player in the market is sure to be felt across the entertainment industry. News Corp., which is controlled by the Murdochs, withdrew its bid for Sky soon after.

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