On Wednesday, the 21st Century Fox stated that they have come up with a new deal that values Sky, the UK broadcaster, at about £24.5 billion ($32.5 billion). The other company in this bidding war is Comcast. The competition is between Rupert Murdoch´s Fox and Comcast, mainly a war between Disney (DIS) and Comcast, because each one of them wants a large piece of Fox.
Fox’s new big is for $18.60 per share for Sky, which is 12% higher than what Comcast offered. There was a previous bid in December 2016 by Fox.
In response, Sky´s independent committee decided to settle for the offer and Fox at this time owns 39% of Sky. Fox is attempting to get approval of the big through an extensive process being carried out by media regulators in Great Britain.
UK government officials have said that a new agreement can still take place, but only if Fox sells Sky News to a third party. Fox owning Sky News worries regulators who believe the deal may give Murdoch and his family too much influence over the UK media.
There is still the possibility that Comcast may also decide to make yet another bid that is higher.
Some investors expect to see a higher offer as shares of the UK broadcaster as earlier as Wednesday morning were trading at $19.95.
United States media companies grow their operations across Europe and in order to do that, they must buy an existing broadcaster such as Sky that give them the ability to then expand its growth.
US companies, such as Comcast, must compete against Netflix and Amazon, which are both relatively news in the market, and to do so much expand. Sky has an established business across Germany, Italy, and the United Kingdom. The company also sells broadband and phone services, which will help with revenue and profits for the US companies if they decide to make this it is still worth making a larger bid for Sky.