Comcast bids for Sky Broadcasting, improving on the offer from Fox

Comcast said the bid would bring attractive financial benefits to its shareholders.

Comcast Corporation has made a superior cash proposal to acquire Sky.

Sky is a leading consumer entertainment company in Europe, providing entertainment and communications services primarily in the UK, Germany and Italy.

Comcast’s announcement of a superior cash proposal of £12.50 per share represents a 16% increase in value over the existing 21st Century Fox offer for Sky. Comcast’s superior cash proposal implies an equity value of $31bn (£22bn) for Sky.

Comcast said the bid would bring attractive financial benefits to Comcast shareholders, and is expected to be accretive to Comcast’s free cash flow per share in year one.

“We think Sky is an outstanding company. It has 23 million customers and leading positions in the UK, Italy, and Germany. Sky has been a consistent innovator in its use of technology to deliver a fantastic viewing experience and has a proud record of investment in news and programming. It has great people and a very strong and capable management team,” said Brian L Roberts, chairman and CEO of Comcast Corporation.

Roberts added, “Comcast intends to use Sky as a platform for growth in Europe. We already have a strong presence in London through our NBCUniversal international operations, and we intend to maintain Sky’s UK headquarters. Adding Sky to the Comcast family of businesses will increase our international revenues from 9% to 25% of Company revenues.”

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