Home BUSINESS NEWS Sky receives £22bn formal takeover offer from Comcast

Sky receives £22bn formal takeover offer from Comcast

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Sky News studioImage copyright Sky

US cable TV giant Comcast has made a formal £22bn bid for Sky, which values the broadcaster at £12.50 a share.

The move threatens Rupert Murdoch’s attempts to take full control of the pay-TV group.

His 21st Century Fox had already agreed to buy the 61% of Sky it does not already own, an offer worth about £19bn.

Comcast is the biggest US cable TV firm, and owns the broadcast TV network NBC and Universal Pictures.

“We are delighted to be formalising our offer for Sky today,” said Comcast chief executive Brian Roberts.

“We have long believed Sky is an outstanding company and a great fit with Comcast. Sky has a strong business, excellent customer loyalty, and a valued brand. It is led by a terrific management team who we look forward to working with to build and grow this business.”

Comcast said their bid offered a premium of approximately 16% to the 21st Century Fox offer of £10.75 for each Sky share.

What is Comcast?

Comcast is a US multinational media and telecommunications giant.

Its cable TV business is one of the largest in the US, while Comcast Cable also sells internet and phone services.

It owns NBCUniversal, which has news, entertainment and sports cable networks such as NBC and CNBC, as well as film giant Universal Pictures.

Dreamworks Animation, which has made films including Shrek, Madagascar and Kung Fu Panda, is a subsidiary of Universal Pictures.

Article Source : http://www.bbc.co.uk/news/business-43891132