Sky adds TV subscribers as bid battle intensifies

  • 4/20/2018
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LONDON: Sky, the pan-European TV giant, said Thursday that it had added 38,000 customers in its third quarter as a takeover battle for the group intensified. Rupert Murdoch’s 21st Century Fox is hoping to buy the 61 percent of Sky it does not own but the long-running battle has been held up by competition concerns over media plurality and broadcasting standards in Britain. Amid the delay, US cable giant Comcast has offered more than £22 billion for all of Sky, trumping Fox’s bid on a price-per-share basis. In a further twist, Disney is hoping to buy Fox for $52.4 billion — a deal that would see British government concerns over Murdoch’s far-reaching media control in Britain fall away. Awaiting developments in the takeover saga, Sky on Thursday added that its revenue climbed 5.0 percent to £10.14 billion in the first nine months of its 2017-18 financial year that runs to the end of June. “In media terms, Sky is currently the belle of the ball, attracting overseas suitors aplenty. This update is another vindication of the interest being shown,” noted Richard Hunter, head of markets at Interactive Investor. Earlier this month, 21st Century Fox proposed selling rolling TV channel Sky News to Disney in order to finally seal control of Sky. Nearly 18 months ago, 21st Century Fox bid £11.4 billion for the part of Sky it is yet to own. The Fox bid, pitched at £10.75 per Sky share, is significantly lower than the Comcast offer of £12.50. But earlier this year, Britain’s Competitions and Markets Authority provisionally ruled that Murdoch’s planned takeover was not in the public interest and that a deal would hand him too much power in swaying public opinion. Murdoch owns also major British newspaper titles The Times and The Sun. To counter the regulatory obstacle, 21st Century Fox has proposed to sell Sky News to Disney even if the latter does not buy Fox. Another option put up by Fox is to ring-fence Sky News.

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