Comcast acquires majority stake in Sky, after Fox sells existing stake


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Comcast acquires majority stake in Sky, after Fox sells existing stake

After having acquired 29.1% of the shares of Sky, Comcast has now managed to buy out Fox's existing, 39% stake in the British company. Earlier, in the auction that was held in September, Comcast had outbid its rivals, Fox to take over Sky.

Comcast's takeover bid for Sky was pegged at around $36 billion. Fox has now agreed to sell Comcast its existing shares in Sky for about $15 billion. This, in turn, would give Comcast majority ownership of Sky. As such, according to a Reuters report, Comcast is not planning to buy shares in the open market (for which it had quoted $22 at the time of the auction).

In terms of Fox's take over by Disney which is slated to be around $71 billion and which had included potentially absorbing Sky as well. Announcing the acquisition of the 29.1% shares by Comcast Bidco, a subsidiary company of Comcast, the London Stock Exchange statement had mentioned, "As a result of its purchases, Comcast Bidco owns a total of 499,571,959 Sky Shares, representing approximately 29.1 per cent.

of the ordinary share capital of Sky." Both Comcast and Fox were keen to acquire Sky as the acquisition would have helped the American companies widen their broadcasting coverage across Europe.