Comcast (NASDAQ:CMCSA) has announced a superior cash proposal to acquire Sky, a consumer entertainment company in Europe, providing entertainment and communications services primarily in the UK, Germany, and Italy.
Comcast is offering £12.50 per share, for an equity value of £22 billion (US$31 billion) for Sky. The proposed acquisition is intended to improve Comcast's entertainment, distribution and technology position, and to expand Comcast's international footprint.
"We think Sky is an outstanding company. It has 23 million customers and leading positions in the UK, Italy and Germany. Sky has been a consistent innovator in its use of technology to deliver a fantastic viewing experience and has a proud record of investment in news and programming. It has great people and a very strong and capable management team," said Brian L. Roberts, chairman and CEO of Comcast. "Comcast intends to use Sky as a platform for growth in Europe. We already have a strong presence in London through our NBCUniversal international operations, and we intend to maintain Sky's UK headquarters. Adding Sky to the Comcast family of businesses will increase our international revenues from 9% to 25% of company revenues."
