Fox selling 39% stake in Sky to Comcast

Sky
With Disney's blessing, Fox is selling its 39% stake in Sky to Comcast. (Sky)

21st Century Fox confirmed today it will sell its 39% stake in U.K. operator Sky to Comcast after Comcast won an auction for the publicly traded part of Sky.

Fox said it intends to either accept the recommended revised cash offer by Comcast for the entire issued and to-be-issued share capital of Sky at a price of £17.28 each, or sell Fox’s existing stake to Comcast at the Comcast offer price.

Comcast’s offer for Sky values Fox’s stake at £11.6 billion (or more than $15 billion). Fox said that Disney, which is acquiring much of Fox as part of a $71.3 billion deal, has consented to Fox’s decision.

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceVideo!

The Video industry is an ever-changing world where big ideas come along daily. Cable, Media and Entertainment, Telco, and Tech companies rely on FierceVideo for the latest news, trends, and analysis on video creation and distribution, OTT delivery technologies, content licensing, and advertising strategies. Sign up today to get news and updates delivered to your inbox and read on the go.

“In light of the premium Comcast has agreed to pay for Sky, we and Disney have decided to sell 21CF's existing 39% holding in Sky to Comcast. We congratulate Comcast on their pending acquisition,” said Fox in a statement. “We are proud of the role our company has played in building Sky, and of the outstanding value we have delivered for shareholders of 21CF and Sky, and customers across Europe.”

RELATED: Comcast beats out Fox in fight for Sky with $40B bid

Fox’s decision comes after Comcast last weekend won a U.K. regulatory auction for Sky with a bid that sets an implied value of $40 billion (£30.6 billion) for the fully diluted share capital of Sky.

“This is a great day for Comcast. Sky is a wonderful company with a great platform, tremendous brand, and accomplished management team. This acquisition will allow us to quickly, efficiently and meaningfully increase our customer base and expand internationally. We couldn’t be more excited by the opportunities in front of us. We now encourage Sky shareholders to accept our offer, which we look forward to completing before the end of October 2018,” said Comcast CEO Brian Roberts in a statement.

Suggested Articles

Philo today announced that beginning May 6 it will stop selling its $16-per-month channel package to new subscribers, leaving only the $20-per-month option.

This post will discuss how promising new hardware technologies, such as 5G and stream processing units, can be configured and deployed to help solve the OTT…

Based on 66 OTT providers, led by Netflix, Hulu and Amazon, the firm estimates U.S. OTT access revenue grew 37% to $16.3 billion in 2018 and will grow even…