Strife of Brian

25 April 2018 By Liam Proud Follow @liamwardproud

Brian Roberts’ Comcast formalised a $31 bln bid for the UK group. Rival suitors Bob Iger and Rupert Murdoch, of Disney and Fox, will struggle to match the U.S. cable giant’s synergies. Sky investors betting on a counteroffer must hope the media moguls ditch financial logic.

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U.S. cable and media group Comcast on April 25 submitted a 22 billion pound ($31 billion) bid for pay-TV group Sky, confirming a tentative offer launched in February.

The all-cash offer of 12.50 pounds per share is 16 percent higher than Twenty-First Century Fox’s bid for the 61 percent of Sky it doesn’t already own. That offer, launched in December 2016, values the company at 10.75 pounds per share.

Sky’s independent board committee on April 25 withdrew its recommendation for Fox’s bid and terminated a cooperation agreement with the media group chaired by Rupert Murdoch. Fox said it remained committed to its cash offer for Sky and is currently considering its options.

Comcast’s proposal includes voluntary but legally binding commitments which include funding Sky News for 10 years at the 2016-17 level or higher, protecting the news channel’s editorial independence, and not acquiring a majority interest in any British newspapers for five years.

Sky shares were up 3.4 percent to 13.53 pounds at 1128 GMT.

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