U.S. media giant Comcast announced Tuesday it was making a proposed cash offer to buy Sky for 22.1 billion pounds ($31 billion), rivaling Rupert Murdoch’s Fox to take over the pay-TV group.
Comcast, which owns NBC and Universal Pictures, said it was offering 12.50 pounds per share. That proposal is significantly higher than the 10.75 pounds per share agreed by Fox.
“We think Sky is an outstanding company. It has 23 million customers and leading positions in the U.K., Italy, and Germany,” said Brian L. Roberts, chairman and CEO of Comcast Corporation, in a statement.
“Sky has been a consistent innovator in its use of technology to deliver a fantastic viewing experience and has a proud record of investment in news and programming. It has great people and a very strong and capable management team.”
U.K.-listed shares of Sky surged more than 18 percent shortly after the opening bell on Tuesday morning.
Comcast’s proposed offer pits the biggest cable operator in the U.S. against Murdoch’s 21st Century Fox. Meanwhile, Disney has agreed to buy a string of assets from Fox once the deal is done — including Sky.
Fox had already agreed on a deal of 18.5 billion pounds to buy a 61 percent stake in the U.K.-based broadcasting group it does not currently own. But last month, the U.K.’s competition authority provisionally found Fox’s bid for Sky would not be in the public interest.
The Competition and Markets Authority (CMA) cited concerns the Murdoch Family Trust would have too much influence over public opinion and the political agenda if the deal went through. It added that spinning off or divesting Sky News, insulating Sky News from Fox’s influence, or blocking the deal outright would be possible solutions to its concerns.
Sky declined to comment when contacted by CNBC.
Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com.
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