Comcast buys 29.1 percent of Sky stock in market purchases

  • Comcast buys 29.1 percent of Sky stock in market purchases

Comcast buys 29.1 percent of Sky stock in market purchases

The NBC and Comcast logos are displayed on 30 Rockefeller Plaza in midtown Manhattan in NY, U.S., February 27, 2018.

The company's share price fell by 6 per cent to $35.63 - its worst day in nearly three years - amid concerns that Brian Roberts, chief executive, is paying too much for Europe's biggest pay-TV company.

Comcast Corp.'s winning bid for Sky Plc is poised to catapult the USA cable giant's debt load to $100 billion or more, putting it in a club that only a handful of other companies belong to.

According to a UBS note sent to clients on Monday, Comcast's subscriber base will climb to 53 million from 30 million as a result of the Sky deal, while its global reach jumps to 25% from 8%.

"If Comcast gets 100 percent, it certainly puts a lot of stress on its balance sheet", Sarma said.

But the battle between the cable giants is not yet over.

And based on the Comcast offer, UBS analyst John Hodulik values the Disney/Fox stake in Sky at about $15.5 billion and Comcast's stake in Hulu at $3 billion.

Since then, Fox again raised their offer - to UK£14 per share, before Comcast bid UK£14.75. We now encourage Sky shareholders to accept our offer, which we look forward to completing before the end of October 2018.

Comcast shares were down 7% Monday.

Disney has agreed a separate $71bn deal to buy most of Fox's film and TV assets, including its existing 39pc stake in Sky, and would have taken full ownership after a successful Fox takeover.

As a result, the auction has been called to a resolve a unique situation made even more complex by Disney's proposed concurrent takeover of Fox.