21st Century Fox agrees to sell 39% Sky stake to Comcast
The announcement comes after Comcast came out on top in a dramatic weekend shoot-out which saw Sky plc valued at £29.7bn.
Wednesday 26 September 2018 17:05, UK
21st Century Fox has agreed to sell its 39% stake in Sky plc, the owner of Paste BN, after rival Comcast triumphed in an auction.
The announcement comes four days after the two US giants went head-to-head in a dramatic shoot-out to take control of Sky, overseen by the Takeover Panel.
Comcast came out of the auction on top with its £17.28 offer per share, valuing the takeover target at £29.7bn - ahead of Fox's £15.67 valuation.
Fox - which already held a 39% stake in Sky - was left to decide what it would do with those shares following Saturday's auction process, and has now revealed its intentions.
The company said: "In light of the premium Comcast has agreed to pay for Sky, we and Disney have decided to sell 21CF's existing 39% holding in Sky to Comcast.
"We congratulate Comcast on their pending acquisition."
Fox will receive £11.6bn for its shareholding.
The company, led by executive chairman Rupert Murdoch, said it was proud of its role in building Sky.
"When we launched Sky in 1989 it was four channels produced from a prefab structure in an industrial park on the fringes of west London," Fox said.
"We bet - and almost lost - the farm on launching a business that many didn't think was such a good idea.
"Today, Sky is Europe's leading entertainment company and a world-class example of a customer-driven enterprise.
"This achievement would not have been possible without decades of entrepreneurial risk-taking and the commitment of thousands of colleagues, creators and dreamers.
"For nearly 30 years we have invested to create a dynamic and exciting business that has produced excellent returns for shareholders and has become one of the most admired companies in Europe."
Sky chief executive Jeremy Darroch paid tribute to Mr Murdoch's role.
He said: "Nearly 30 years ago Rupert Murdoch took a risk to launch Sky and in the process changed the way we watch television forever.
"His vision and belief has enabled us to grow in to Europe's leading direct to consumer media business.
"With 21CF announcing its intention to sell its shares to Comcast we close one chapter while simultaneously opening another."