Following three rounds of bidding (that’s exceptional), Comcast won over Disney-21st to take ownership of Sky. Sky is the European leader in Pay TV. The goal is to challenge Netflix or Amazon Prime.
The battle was long, bitter and with many developments. But the prize was worth it. Sky is a network of satellite package, number 1 in Europe. Its profitability is envied thanks to its 23 million subscribers in Great Britain, Italy, Germany, and Austria.
A coveted technology to enforce multi-screen offers
Sky also launched paid streaming with Now TV. It lets subscribers watch and record all the content from all the channels on all their screens. This technology was decisive in the choice to acquire the company. It can counter Netflix or Amazon on their own grounds.
Three rounds of bidding took place over 24 hours. It is the modus operandi offered by the British mergers and acquisitions regulator. This is what it took to break a tie between the two candidates.
Comcast vs. Disney, episode 2
On one hand, the 21st Century Fox, about to be bought out by Disney, future media giant. Its core business is cinema but it has drifted into television a long time ago.
On the other hand: Comcast. It is the US leader in cable television, the prince of paying TV. It launched about 10 years ago amid a takeover frenzy (including NBC, Universal or Dreamworks) that just failed to rip Disney of Fox.
What will become of the Sky shares owned by … Fox?
Comcast finally got its way, offering 17,28£ per share. This means a valuation of Sky climbing up to 33 billion Euros, doubling its current value.
Isn’t it ironic that Sky belongs to Ruppert Murdoch, Fox’ boss, who owns 39% of the British satellite package provider? Fox can now choose to abandon its shares in Sky at a very high valu, or keep a strong minority in the provider.
Know that whatever happens, it’s Disney, upcoming owner of Fox, that will decide…
Is you head aching already?
That’s normal, it’s fusion business.