Fox Will Sell Remaining Sky Stake to Comcast for Around $15 billion
Fox said Wednesday it will sell the remainder of its stake in U.K.-based satellite TV broadcaster Sky to Comcast.
The announcement came four days after the U.S. cable giant won majority ownership of Sky in an auction against Fox.
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. 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, which owns CNBC parent NBCUniversal. 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.
“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,” Disney said in a statement.
Disney could have gained control over Sky had Fox prevailed at Saturday’s auction.
(Excerpt) Read More at: CNBC.com
