US firm Comcast has finalized a £22bn (USD$30.7bn) bid for broadcasting company Sky, challenging the existing and lower takeover offer from Rupert Murdoch’s Twenty-First Century Fox.
Upon receiving the offer from Comcast, equating to £12.50 per share for the British media company, Sky stated that it would now engage in discussions with both Fox and Comcast to decide its future.
Comcast has now formalized the offer, having first announced its intentions to do so in February, putting pressure on Fox to raise its lower £10.75 per-share proposal for the remaining 61% stake in Sky that it does not currently own.
As it stands, Comcast’s bid represents a 16% premium compared to Fox’s own bid for Sky.
The potential deal has also been complicated by Disney’s agreement to acquire the entertainment assets of Fox, including its 39% stake in Sky, for $52.4bn in December.
There has been speculation surrounding whether Disney will bid for the entirety of Sky itself, particularly with its increasing focus on the digital streaming industry, having announced plans to acquire media firm BAMTech LLC and launch its own streaming service in 2019. However, despite this, no offer from Disney has come to fruition to date.