Rupert Murdoch’s 21st Century Fox has increased its bid for Sky to £24.5bn, in an effort to edge out competitor Comcast from a takeover tug-of-war that has been going on for months.
21CF agreed to buy the 61 per cent portion of Sky that it does not already own back in 2016, in a £10.75 per share deal valuing the UK broadcaster at more than £18bn.
However, Comcast waded in with a higher offer of £12.50 per share earlier this year, and Sky withdrew its support for the Fox bid.
On Wednesday, Fox and Sky announced that they had reached agreement on the terms of a new offer of £14 per share, a 12 per cent increase on Comcast’s bid, which values Sky at £24.5bn.
The companies said in a statement to the London Stock Exchange: “As the founding shareholder of Sky, 21CF has remained deeply committed to bringing these two organisations together to create a world-class business positioned to deliver the very best entertainment experiences well into the future.
“21CF strongly believes that a combined 21CF and Sky will be a powerful driver for the continued growth and vibrancy of the UK and broader global creative industries.”
The groups said the enhanced scale and capabilities of the combined company will “enrich Sky's ability to continue on its mission for years to come, especially at a time of dynamic change in our industry”.
“This transformative transaction will position Sky so that it can continue to compete within an environment that now includes some of the largest companies in the world, but none of whom have demonstrated the same local depth of investment and commitment to the UK and to Europe,” Sky and 21CF said.
