Comcast increased its bid for pan-European TV group Sky on Wednesday, topping an offer from 21st Century Fox made hours earlier and escalating a takeover battle as media companies prepare themselves for the streaming era.
Comcast raised its bid for Sky to £26 billion ($34.3bn/Dh126bn) only hours after Rupert Murdoch's Fox boosted its offer for the 61 per cent of Sky it does not own.
Fox's latest bid values Sky at £24.5bn.
The battle for Sky comes as Comcast is also embroiled in a takeover battle with Disney for Fox entertainment assets that are being split off from Murdoch's empire. Some analysts have said Comcast could drop its bid for the Fox assets if it wins Sky.
Sky's jewel in the crown is its live coverage of English Premier League football, while the group also provides broadband internet and telephone services.
Media players such as Disney and Comcast have been looking to beef up their creative offerings to compete with Netflix and other streaming services that are eroding the value of conventional cable television assets.
The latest back-and-forth started on Wednesday morning when New York-listed Fox raised its offer to £14 for each outstanding share, up substantially on an offer of £10.75.
"As the founding shareholder of Sky, we have 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," Fox said.
"The enhanced scale and capabilities of the combination will enrich Sky's ability to continue on its mission for years to come, especially at a time of dynamic change in our industry."
But only hours later Comcast rebutted the Fox move, releasing a bid after US markets closed of £14.75 per share, about five per cent above the Fox proposal.
Comcast said its sweetened offer has been accepted by Sky independent committee directors.
"Comcast has long admired Sky and believes it is an outstanding company and a great fit with Comcast," the company said after the US stock market closed.
"Today's announcement further underscores Comcast's belief and its commitment to owning Sky."
Fox's long-running pursuit for all of Sky has been plagued by UK government fears over media plurality and broadcasting standards – and the influence of Australian-born US citizen Murdoch.
Murdoch owns major British newspaper titles The Times and The Sun. Critics say obtaining full control also of the rolling television channel Sky News would give him too much influence in the news business.
To remedy this, Fox has proposed to sell Sky News to Disney.
Disney has gained the upper hand in the battle with Comcast for Fox's assets, winning US regulatory approval for the transaction and scheduling a July 27 shareholder vote on the proposed $71.3bn deal.
Still, Comcast has not walked away from trying to overtake the Fox-Disney tie-up.
Assets in the Fox deal include production companies responsible for The Simpsons and Modern Family, film production businesses and a major stake in the online platform Hulu.
Should Disney's bid for the Fox assets succeed, it will also obtain Fox's 39 per cent stake in Sky as part of the package.
Shares of Comcast rose 0.2 per cent in afterhours trading Wednesday to $33.82, while Fox slipped 0.1 per cent to $47.34. Disney was unchanged.
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Sheffield United 0 Wolves 2 (Jimenez 3', Saiss 6)
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AC Milan v Inter, Sunday, 6pm (UAE), match live on BeIN Sports
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Started: March 2018
Founders: Mohamed Khashaba, Mohamed Abdallah, Mohamed Adel Wafiq and Ayman Taha
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Sector: health technology
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- US sanctions on Iran’s energy industry and exports took effect on Monday, November 5.
- Washington issued formal waivers to eight buyers of Iranian oil, allowing them to continue limited imports. Iraq did not receive a waiver.
- Iraq’s government is cooperating with the US to contain Iranian influence in the country, and increased Iraqi oil production is helping to make up for Iranian crude that sanctions are blocking from markets, US officials say.
- Iraq, the second-biggest producer in the Organization of Petroleum Exporting Countries, pumped last month at a record 4.78 million barrels a day, former Oil Minister Jabbar Al-Luaibi said on Oct. 20. Iraq exported 3.83 million barrels a day last month, according to tanker tracking and data from port agents.
- Iraq has been working to restore production at its northern Kirkuk oil field. Kirkuk could add 200,000 barrels a day of oil to Iraq’s total output, Hook said.
- The country stopped trucking Kirkuk oil to Iran about three weeks ago, in line with U.S. sanctions, according to four people with knowledge of the matter who asked not to be identified because they aren’t allowed to speak to media.
- Oil exports from Iran, OPEC’s third-largest supplier, have slumped since President Donald Trump announced in May that he’d reimpose sanctions. Iran shipped about 1.76 million barrels a day in October out of 3.42 million in total production, data compiled by Bloomberg show.
- Benchmark Brent crude fell 47 cents to $72.70 a barrel in London trading at 7:26 a.m. local time. U.S. West Texas Intermediate was 25 cents lower at $62.85 a barrel in New York. WTI held near the lowest level in seven months as concerns of a tightening market eased after the U.S. granted its waivers to buyers of Iranian crude.
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England v New Zealand (Saturday, 12pm)
Wales v South Africa (Sunday, 1pm)
Women’s T20 World Cup Qualifier
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Ireland beat UAE by six wickets
Zimbabwe beat UAE by eight wickets
UAE beat Netherlands by 10 wickets
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Ireland v Netherlands, 7.30pm, Zayed Cricket Stadium
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1) Ireland 3 3 0 6 +2.407
2. Netherlands 3 2 1 4 +1.117
3) UAE 3 1 2 2 0.000
4) Zimbabwe 4 1 3 2 -0.844
5) Vanuatu 3 1 2 2 -2.180
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Match is live on BeIN Sports
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