Comcast Wins Sky; Hulu’s Fate Is In The Air

Disney and Fox, who successfully merged when Disney outbid Comcast for ownership, have now lost their bid to obtain British broadcasting company Sky. The $38 billion dollar deal was closed over the weekend, making it a huge investment for Comcast to pay for an international company’s assets.

The final bids per share were Fox’s 15.67 pounds versus Comcast’s 17.28 pounds per share. This roughly translates to $20.55 and $22.66 respectively in U.S. dollars. In a way, this was Comcast’s way of retaliating against their loss to Disney, who beat them in their bid war earlier this year. The auction went in three rounds, a rare occasion for British bidding when it comes to company mergers.

The biggest piece of news that might come out of this merger is how Hulu is now up in the air when it comes to ownership. The streaming service with nearly 20 million subscribers has split ownership between Disney/Fox, Comcast, and AT&T. Comcast has a 30% stake in Hulu, and some analysts believe that Comcast might sell those assets instead of retaining them.

Since the announcement, shares in Sky have jumped 9 percent. The interest most likely stems from the unique approach that Sky has taken towards the broadcasting market.

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6 years ago
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