21st Century Fox has wrapped up the sale of its 39 percent stake in Sky to Comcast, which now owns more than 75 percent of the British pay TV giant’s ordinary shares.
Comcast won against Fox in a September auction for Sky, with an offer of about $22.58 per share, or nearly $39 billion.
Afterward, Disney, which has its own deal to acquire Fox’s entertainment assets, consented to Fox tendering its 39 percent stake in Sky to Comcast for about $15.25 billion. The proceeds from Fox’s stake in Sky will go to Disney to lighten the cost of its $71.3 billion Fox purchase.
Sky has recommended that any shareholders who hadn’t accepted Comcast’s offer yet, do so immediately.
“We are pleased today to be the majority owner of Sky. Led by Jeremy Darroch and his superb team — now together with Comcast — our combined global leadership in technology and content paves the way for us to accelerate investment and growth in Sky’s brand and premier platforms,” Comcast CEO and Chairman Brian Roberts said in a statement. “We are also fully committed to ensuring Sky News’ future, maintaining its editorial independence, and preserving its strong track record for trusted, high quality, impartial news.”
Comcast said it will give 14 days to settle consideration on its mandatory offer, and if the company hits 90 percent acceptance of its offer for Sky shares, the cable giant will use a regulatory provision “to acquire compulsorily any Sky Shares not acquired or agreed to be acquired by or on behalf of Comcast Bidco pursuant to the mandatory offer.”
“Comcast have committed to investment in Sky, including our Osterley and European headquarters and we very much look forward to working with Brian and the Comcast team to achieve further growth and development of Sky’s business,” said Jeremy Darroch, group CEO of Sky, in a statement. “Separately, Sky News will benefit greatly from Comcast’s funding commitments over the coming years and the arrangements that will be put in place to preserve and enhance its editorial independence.”
Comcast previously bowed out of a bidding war against Disney for Fox’s assets in order to focus its efforts on winning Sky.
Sky’s listing on the London Stock Exchange is expected to be canceled Nov. 7.