Comcast shares fall after $40B bid to buy Sky stake

Cornelia Mascio
Settembre 25, 2018

The independent committee established by Sky to examine the future ownership of the broadcaster has said it is in the best interests of shareholders to accept Comcast's offer.

Comcast's delight in landing Sky proved to be shortlived yesterday as investors wiped almost $10 billion off the value of America's largest cable provider. Analysts now see the limelight shifting to Hulu, and Disney-Fox's stake in Sky.

Comcast shares were down 7% Monday.

Shares in Sky plc are up 8.8 percent after Comcast won a bidding war for the British pay TV giant in a weekend auction that pushed the value of the company to nearly 30 billion pounds ($39 billion).

It is expected to use Sky's assets to generate TV streaming services once the deal completes before the end of October.

Representatives for Philadelphia-based Comcast; Burbank, California-based Disney and Isleworth, U.K. -based Sky were not immediately available to comment.

Twenty-First Century Fox is the parent company of FOX Business and Fox News.

S&P said in February that it might cut Comcast's rating, which at A- is four steps above junk, after the cable company originally announced a bid for Sky.

The auction on Saturday was the culmination of a chaotic two-year takeover battle. Leverage would rise to around 3.4 times Ebitda if it buys all of Sky, and Comcast should be able to cut that by at least 0.3 times annually, he said.

"Sky is a wonderful company with a great platform, tremendous brand, and accomplished management team", said Comcast chairman and chief executive Brian L. Roberts. Owning all of Sky would elevate Comcast's debt level to $110 billion, by Flynn's estimate.

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