Comcast carries off Sky

EXECUTIVES at Comcast in Philadelphia have grown accustomed to describing their company in a way that exudes angst: it is “cash-rich but future-poor”. The cable-and-entertainment giant generates $85bn in annual revenues but, unlike its principal rivals, Disney and AT&T, is regarded as poorly equipped to challenge a powerful competitor, Netflix, in global internet video. On September 22nd the company spent extravagantly to change that, outbidding 21st Century Fox (which was backed by Disney) for control of Sky, a European satellite broadcaster. It won the day, in a rare auction of a public company, with an offer of £30.6bn ($40.3bn).

It may prove a costly victory. Comcast shares have fallen by nearly 7% since the auction, on fears that it overpaid for a company whose core technology, satellite television, is becoming obsolete. Disney, as the “loser” along with Fox in the bidding, makes out like a bandit. The Mouse was to get a 39% stake in Sky as part of its acquisition of Fox....

via Business Feeds

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