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Sky urges shareholders to accept deal as Comcast outbids Fox

Mon, 24th Sep 2018 07:22

(Sharecast News) - Sky urged its shareholders on Monday to accept a takeover offer from US cable company Comcast after it outbid Rupert Murdoch's 21st Century Fox for the London-listed broadcaster.Sky said the Comcast offer of £17.28 represents an "excellent outcome" for its shareholders, at a premium of 125% to the closing price 6 December 2016, which was the last business day before Fox's initial approach. The price also represents a multiple of 15.5 times Sky's adjusted EBITDA for the 12-month period ended 30 June 2018.In an almost unprecedented auction held by the UK's Takeover Panel on Saturday, Comcast outbid Fox's £15.67 per share bid for Sky."As the price of the Comcast offer is materially superior, it is in the best interests of all Sky shareholders to accept the Comcast offer. "Accordingly, the Independent Committee unanimously recommends that Sky shareholders accept the Comcast offer, and in order to ensure the successful closing of the Comcast offer, and given the possibility of a delisting of Sky in the near future, urges shareholders to accept immediately."Liberum noted that Sky shareholders have until 11 October to accept the deal. "With the independent directors of Sky backing the deal and the premium to the share price close on Friday, it is almost inevitable that non-Fox shareholders will take the offer," it said."The more interesting question is what Fox (or Fox / Disney) does with its 39% stake. Technically, it does not have to accept, which would leave Comcast with a major shareholder that could act as an irritant if it so desired. In reality, we think Fox/Disney will sell its stake in the company - it is a windfall for Fox and, for Disney, there is no direct competition in Europe between it and Comcast in the pay-TV arena."Analyst Ian Whittaker said he does not expect a significant amount of change for Sky. "It is very unlikely Comcast will look to rebrand Sky, it has pledged to keep Sky News and there is visibility on the major football contracts. Comcast is likely to take Sky's expertise in areas such as technology and customer service back to the United States to help with its operations there."
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12 Dec 2016 10:25

Fox's Sky takeover faces major political obstacles, analysts say

(ShareCast News) - Analysts said Sky's takeover by Twenty-First Century Fox faces several obstacles, including the new political climate, 'fit and proper' tests of directors and the objections of shareholders over the price. On Friday, Rupert Murdoch's Fox approached the FTSE 100 company with a prel

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11 Dec 2016 17:28

Sunday newspaper round-up: Brexit challenge, US rate hike, Sky revolt, RBS

(ShareCast News) - Another legal spanner has been thrown into the works of the government's Brexit plans, with a High Court challenge to attempt to prevent the UK from pulling out of the European single market. The Sunday Times reported that claimants, including Peter Wilding of the British Influenc

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9 Dec 2016 16:10

21st Century Fox launches all cash offer for Sky

(ShareCast News) - Sky agreed to a take over by US media giant 21st Century Fox at a price of 1075p per share in cash, for a 36% premium on the shares' closing price as of 8 December. That translated into an £11.2bn offer for the 61% of Sky which Rupert Murdoch's Fox did not already own. Any divide

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29 Nov 2016 21:20

Sky launches mobile service into £15bn UK market

(ShareCast News) - Sky said it will launch its mobile service in the UK next month with 46,000 customers already pre-registered for what some analysts said will be a quick money-spinner for the broadcaster, though others foresaw problems. The service, via a virtual mobile network operator model usin

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29 Nov 2016 08:31

LONDON MARKET OPEN: BT Down, Sky And TalkTalk Up On Openreach Decision

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22 Nov 2016 12:18

EXTRA: UK Telecoms Providers Welcome Hammond's Fibre Network Plans

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22 Nov 2016 10:12

Credit Suisse reviews European media stocks; downgrades Pearson

(ShareCast News) - Credit Suisse updated its ratings and initiated on stocks in the European media sector. The Swiss bank upgraded RELX from 'neutral' to 'outperform' and bumped up the price target to 1,600p from 1,370p. It said the company's high-quality assets with market-leading positions have le

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22 Nov 2016 09:56

Tuesday broker round-up

(ShareCast News) - BT Group: UBS reiterates neutral with a target price of 400p. Tesco: JP Morgan reiterates underweight with a 135p target. Relx: Credit Suisse stays at outperform with a 1600p target. Pets at Home: HSBC reiterates buy with a 320p target. Royal Dutch Shell B: UBS starts coverage

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18 Nov 2016 14:47

Premier League agrees bumper £560m Chinese TV rights deal

(ShareCast News) - Chinese streaming service PPTV will pay as much as £650m to show Premier League games over the next three years, in what will be the football competition's largest ever overseas broadcast deal. PPTV is a unit of Suning Holdings Co, who bought a majority stake in Italian football g

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18 Nov 2016 10:18

PRESS: Sky And BT Chiefs Play Down Chance Of Football Bidding War - FT

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25 Oct 2016 15:01

DIRECTOR DEALINGS: Sky Non-Executive Director Ups Interest

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14 Oct 2016 09:46

Friday broker round-up

(ShareCast News) - Acacia: Jefferies keeps at buy with a target price of 610p. Tesco: HSBC reiterates hold, 195p target. Weir: UBS downgrades to neutral with a 1830p target. Sky: HSBC reiterates hold with a 820p target. Playtech: UBS keeps at buy with a 1060p target. Jupiter: JP Morgan keeps at

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14 Oct 2016 09:15

Sky shareholders protest reappointment of James Murdoch

(ShareCast News) - Over 50% of independent Sky investors voted against the return of James Murdoch as chairman at the annual general meeting (AGM) on Thursday, over concerns about board independence and the phone-hacking scandal. Despite that, the appointment went through after the company's largest

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13 Oct 2016 07:06

Sky makes strong start to financial year

(ShareCast News) - Subscription broadcaster and broadband provider Sky posted an update to its first quarter trading on Thursday, with group revenue up 7% to £3.1bn and like-for-like revenue up 5%. The FTSE 100 firm reported positive growth in all markets, with revenue in the UK and Ireland up £101m

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12 Oct 2016 14:40

Wednesday broker round-up

(ShareCast News) - Shire: Goldman Sachs keeps at buy with a target price of 6300p. Page Group: HSBC reiterates hold, 385p target. McCarthy & Stone: UBS keeps at sell with a 150p target. Arrow Global: Macquarie reiterates outperform with a 335p target. Electrocomponents: Citigroup keeps at neutral

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