There are few lasting happily ever afters in business, and that’s doubly true in the world of media and broadcasting.

For financial investors, the conclusion of last weekend’s dramatic $40bn auction win for Sky also brings with it a new set of uncertainties and unanswered questions.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Comcast buys Sky, Fox left empty-handed

Last weekend, US cable giant Comcast outbid Rupert Murdoch’s 21st Century Fox for a controlling stake in the pan-European pay-TV broadcaster Sky.

The market reaction has been good for Sky’s share price and executives alike, but it’s hardly the end of the story.

Comcast buys Sky - VerdictCredit: Google Finance

In the UK press, attention has focused on what Rupert Murdoch will do next, and whether the frustration of losing the desired controlling stake in a company he built from scratch will force the controversial media mogul into retirement, or whether he will simply make his next move.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Murdoch family empire, which still owns 39% of Sky, is currently in the process of selling the majority of 21st Century Fox to Disney. Earlier this summer, a $60bn deal was agreed that will see Murdoch pass over his controlling stake to Disney along with a number of key entertainment assets.

Some investors have speculated that Comcast, which owns 30% of Hulu, may be open to a sideline deal, to allow Fox to consolidate its returns in video streaming, in exchange.

Comcast-Sky: A global content conglomerate

It’s also unclear how the two largest and most disruptive names in pay TV – Netflix and Amazon – will to react to the news of the merger, or even if they will react at all.

The combined forces of Comcast and Sky certainly allow the former the size and muscle to better offset the over-the-top threat with a wide and progressive array of new assets and international exposure.

Perhaps more importantly, Comcast will now come under intense scrutiny to make good on its $40bn bid for Sky, and demonstrate a strong and healthy international expansion return on this investment. Quite how this return is to be established is unclear, and represents one of the largest, and arguably trickiest, merger and acquisition execution challenges of all time.

The only thing that’s fairly certain at this point is that Comcast’s bid is likely to be successful. Sky’s Independent Committee, set up to guide the company post-bidding, has recommended the offer, and indeed, there’s a lot to be said for it.

An aggregated Comcast-Sky will create a global content conglomerate, with a finger in almost every media and broadcasting pie – from pay TV to premium sports, virtual reality and gaming.