Thu, 22nd Mar 2018
Comcast has made a £22 billion bid for Sky, and this is just the latest move in a long saga. Rupert Murdoch has already sold his stake in Sky, and some 21st Century Fox assets to Bob Iger’s Disney. This move could have been simple, but now Comcast has confused the matter by throwing in a £22 billion takeover bid.
The deal with Disney is complicated because Murdoch is attempting to buy the remaining 61% of Sky, and if it is approved by regulators, then he will be able to hand over 100% of Sky to Disney. If, however, Comcast is able to buy up a majority stake in Sky, then that could put a stop to Murdoch’s plan.
Sky faces a lot of competition from online streaming services, but it still remains the biggest pay-TV operator in the UK, with 22 million users. The company produces around £2 billion in profits each year, and Sky expanded to several European companies by picking up sister companies in Austria, Italy and Germany. This means that it has scope for a lot of growth. Sky now has some on-demand services that help it to remain competitive in the ‘Netflix era’, and it is a major player in terms of licensing deals, and even producing its own content, since it now owns the maker of the popular The Great British Bake Off show. It’s clear that US companies see the versatility, and are looking to pick the company up as a way to enjoy more revenue streams.