Ruffled feathers

27 September 2018 By Jennifer Saba Follow @jennifersaba

Disney made the best call of the Fox-Comcast-Sky saga by consenting to Fox selling its Sky stake at Comcast’s eye-popping price. It plans to invest some of the $15 bln proceeds in Hulu. Comcast, which owns 30 pct of the online-video JV, would be wise to follow suit and let it go.

This content is for Subscribers only

Context News

Walt Disney said on Sept. 26 it has consented to let Twenty-First Century Fox sell its 39 percent stake in Sky to Comcast, which has offered to buy the UK pay-TV group for 17.28 pounds per share. Comcast’s bid values Sky at $40 billion.

Disney, which had agreed to buy Fox assets including the Sky stake, plans to use the proceeds, some $15 billion, to pay down debt and invest in its consumer video streaming products, including Hulu.

Disney in June agreed to acquire Fox’s entertainment and international assets for $71 billion. The deal also includes Fox’s 30 percent stake in Hulu, which will double Disney’s position in the video-streaming service to 60 percent. Comcast owns 30 percent of the business.

Email a friend

Please complete the form below.

Required fields *