Fox Agrees to Sell Its Remaining Stake in Sky to Comcast

Sep 26, 2018  •  Post A Comment

Just four days after cable giant and NBCUniversal owner Comcast won majority ownership of Sky in a bidding war with Fox, CNBC reports that Fox has agreed to sell the remainder of its stake in the U.K.-based satellite TV broadcaster to Comcast.

“Comcast and Fox had been embroiled in a bidding war for Sky, which is viewed as a coveted international asset in the pay-TV industry,” CNBC reports. “Fox sold most of its other assets in December to Disney for $52 billion. Comcast has anticipated that Fox, working in concert with Disney, would eventually tender its stake, sources familiar with the matter told CNBC this week.

“With Comcast having offered $40 billion for a majority stake in Sky, Disney consented to 21st Century Fox tendering its 39 percent stake in Sky to the cable company.”

The report adds: “At current exchange rates, the 17.28 pound offer translates into $22.75 per share, valuing the deal for the remainder at over $15 billion.”

In a statement, Disney said: “The transaction, coupled with the divestiture of the Fox Sports Regional Networks, will significantly reduce the amount of debt Disney will incur in acquiring 21st Century Fox, and enable Disney to maintain its strong balance sheet as it continues to invest in content creation for its direct-to-consumer platforms.”

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