Sky Shares Rally After Comcast And Fox Go Head-To-Head In Bid Battle - FbiCables Network | The News that Shapes World Opinion

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Thursday, July 12, 2018

Sky Shares Rally After Comcast And Fox Go Head-To-Head In Bid Battle


FILE PHOTO: The Sky logo is seen at the company's UK headquarters in west London
FILE PHOTO: The Sky logo is seen at the company's UK headquarters in west London July 25, 2014. REUTERS/Toby Melville/File Photo
July 12, 2018
LONDON (Reuters) – Shares in Sky <SKYB.L> jumped higher on Thursday after Comcast <CMCSA.O> submitted a $34 billion bid for the group just hours after Rupert Murdoch raised his offer, escalating a trans-Atlantic bidding war for the European pan-TV group.
Comcast, the world’s biggest entertainment group, said it had secured the backing of Sky’s independent directors for a 14.75 pounds per share offer that came just 16 hours after Murdoch’s 21st Century Fox <FOXA.O> had raised its bid to 14 pounds a share.
The speed with which Comcast’s Brian Roberts returned with a higher offer was designed to show how determined he is to buy the group which is present in 23 million homes across Europe.
Sky’s shares were up 3 percent at 15.38 pounds on Thursday as investors bet the battle has further to run for a group which owns a slate of top sport and original drama content.
The fight for Britain’s leading pay-TV group is part of a bigger battle being waged in the entertainment industry as the world’s media giants spend tens of billions of dollars to better compete against Netflix <NFLX.O> and Amazon.com <AMZN.O>.
Comcast and Walt Disney <DIS.N> are locked in a separate $70 billion-plus battle to buy most of Fox’s assets, which would include Sky, and Disney is backing Murdoch in his pursuit of the British company.

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