Comcast (NASDAQ: CMCSA) has finally won a long bidding war for Sky PLC, the British multinational media and telecommunications company. Comcast was in close competition with Disney-owned 21st Century Fox, beating that company and all other bidders in a blind auction.
This will put it in control of the largest European media company and Pay-TV provider. The television side of Sky has more than 21 million subscribers in Europe.
Prolonged Bidding War Results in Win for Comcast
As far back as December 2017, it was predicted that Disney would ultimately become the new owner of Sky PLC, through their purchase of the media properties of 21st Century Fox. Fox owns a 38% stake in Sky.
Comcast entered the conversation with its own offer, before the two companies exchanged positions as the leading bidders. Rights for ownership eventually went down to a blind auction held by UK regulators, in which it placed the highest bid.
Comcast will pay £17.28 per share, or the equivalent to $22.59. Sky is currently valued at £29.7 Billion, although share prices rose slightly after the announcement of the acquisition.
Comcast’s own shares in the United States Stock Market also grew when the news broke at the end of last week. Comcast is currently valued at $37.99 per share ahead of Monday’s trading. This is a 0.24% increase over the market closing on Thursday of last week.
Investors will be pleased by this development, which comes at a key time in a year where Comcast has lost 5.37% of its total stock value. Performance in the last three months has been better than the year to date, with value increasing by 12.10%. Investors will hope that the positive gains continue up until the end of the year.
Acquisition Continues the Trend of Telcos Obtaining Media Properties
A significant trend of 2018 has been the increased push for telecommunications companies to acquire media properties. Companies like Comcast wish to control their own media distribution networks so that they can consolidate services and offer streaming television and movie solutions through their internet infrastructure.
With this acquisition, shown its commitment to investors and the future. Sky PLC is a highly profitable company which has increased revenue year-on-year since June 1991. In the last financial year, Sky made £691 Million ($902.9 Million) in profit after all taxes.
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