Comcast Proposes to Buy European Media Giant Sky for $31 Billion
The proposal comes after the United Kingdom has blocked Fox’s bid for the European entertainment network
Sharon Waxman | February 26, 2018 @ 11:32 PM
Last Updated: February 27, 2018 @ 11:25 AM
Comcast on Tuesday proposed to buy the European pay-TV and media behemoth Sky for $31 billion in cash, seeking to undercut a long-standing bid by 21st Century Fox for the portion of the company it does not already own.
“We think Sky is an outstanding company,” said Brian L. Roberts, Chairman and CEO of Comcast Corporation, in a release issued in the early hours of Tuesday. “It has 23 million customers and leading positions in the UK, Italy, and Germany. Sky has been a consistent innovator in its use of technology to deliver a fantastic viewing experience and has a proud record of investment in news and programming. It has great people and a very strong and capable management team.”
Comcast said it would offer 12.50 British pounds per share, equivalent to $31 billion, which it said was a 16 percent increase over an offer previously made by 21st Century Fox.
Fox, which already owns 39 percent stake in Sky, has bid about $16 billion for the remainder of the company. But Fox chieftain Rupert Murdoch’s bid has been blocked by British regulators, concerned about the mogul’s influence over Sky News among other issues.
To allay the regulators’ concern, Fox has offered to create an editorial board with a majority of independent directors, and that had been considered an acceptable path to government approval. Murdoch has continued to pursue the deal with the pay TV giant even as Fox has agreed to sell its movie and television assets to Disney.
Murdoch has long coveted full ownership of Sky, and especially of Sky News, a 24-hour news channel. On Tuesday, the company issued a statement declaring that it “remains committed” to completing the acquisition.
But Comcast stepped into the ring with an aggressive bid, seeking a foothold in Europe.
“Comcast intends to use Sky as a platform for growth in Europe,” Roberts said. “We already have a strong presence in London through our NBCUniversal international operations, and we intend to maintain Sky’s U.K. headquarters. Adding Sky to the Comcast family of businesses will increase our international revenues from 9 percent to 25 percent of Company revenues.”
7 People You Never Expected to Make Bank on the DreamWorks Animation Deal (Photos)
Co-founders Jeffrey Katzenberg and Steven Spielberg enjoy the biggest individual stakes in DreamWork's Animation, with Katzenberg's holdings worth a whopping $408 million and Spielberg's worth $187.6 million after Comcast's takeover. But thanks to shares issued to directors and other former execs, a handful of other Hollywood names stand to make a pretty penny in the deal, too.
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Jason Kilar, best known for being the CEO who built video streaming site Hulu from "Clown Co." into a legitimate force in online video, holds a stake thanks to his seat on the board. His holdings are worth nearly $1 million after the Comcast deal.
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Lucian Grainge, who is the head of the world's biggest music label, Universal Music Group, also holds shares because of his board seat. His stake is also nearly $1 million.
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Investment banker Mellody Hobson is DreamWorks Animations chairman since 2012, after eight years as a director. The investment banker, who also serves on the boards for two of George Lucas' foundations, has a stake worth $4.7 million.
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Former Viacom CEO Tom Freston joined DreamWorks Animation's board nearly nine years ago. His stake is worth $2.7 million.
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Entertainment lawyer Skip Brittenham's eight years on the board have built him a stake worth $2.5 million after the Comcast deal.
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Ann Daly, pictured left, is a longtime exec at DreamWorks Animation, serving currently as president and previously as chief operating officer for a decade. After the Comcast deal, her stake in the company is worth $40 million.
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Lew Coleman, another longtime exec at the studio, served for years as vice chairman and chief financial officer. His holdings will be worth $52.7 million when Comcast closes the deal.
Lew Coleman/LinkedIn
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Comcast’s $3.8 billion takeover of DreamWorks Animation will bring big hauls for Jeffrey Katzenberg, Steven Spielberg… and some people who will surprise you
Co-founders Jeffrey Katzenberg and Steven Spielberg enjoy the biggest individual stakes in DreamWork's Animation, with Katzenberg's holdings worth a whopping $408 million and Spielberg's worth $187.6 million after Comcast's takeover. But thanks to shares issued to directors and other former execs, a handful of other Hollywood names stand to make a pretty penny in the deal, too.