The bids are in… and Comcast is FINALLY the winner. The cable giant put up a winning bid of $40 billion for Sky in an uncommon, three round action held by the UK’s Takeover Panel. Both companies were bidding for 61% control of Sky. 21st Century Fox already owns 39% of the company. But it’s not over yet, because Sky shareholders have until October 1st to accept the offer.
Here is the rationale… for Comcast paying so much frickin’ money for 61% of another company. Sky has 23 million subscribers, primarily in Europe. Sky sells broadband and mobile services and owns top original shows and premium sports content. To sum it up, Comcast wants more European customers and better offerings to compete with Amazon and Netflix.
It’s finally over… assuming the deal is accepted. Comcast CEO Brian Roberts has defeated bitter rival Bob Iger, the CEO of Disney. And the two CEOs have been feuding for over ten years, dating back to when Comcast attempted a hostile takeover of Disney. Disney and Iger may accept total defeat and sell their 39% to Comcast, but we’ll have to wait and see if that happens.