This week the long-running saga of who will take ownership of Sky has reached a definitive conclusion, with US-based Comcast splurging billions for control of the London-listed pay-TV provider. The battle for the company had been waged for long months between Comcast and Twentieth Century Fox, both of which saw in Sky opportunities to fortify their foothold in a highly competitive market.
So why would the two compete and, ultimately, why would Comcast buy Sky? £17.28 a share (plus £30.6bn in equity) is a huge amount of money for what is effectively a pay-TV company that exists primarily in a saturated market, so what does its purchase add to the business, and how will it change the market?
Fox/Disney throwing in the towel. Selling its 39pc of Sky to Comcast at the offer price.
— Chris Williams (@cg_williams) September 26, 2018
It had been argued that Comcast was the better fit in terms of synergies, with both companies simultaneously offering both content packages and internet/communications infrastructure – but it appears to have been the former that convinced Comcast execs to up their bid for Sky. That in turn led Fox to ‘throw in the towel’ and admit defeat, its ambitions to own the European pay-TV market abandoned.