Comcast outbids Fox with $40 billion offer for Sky in auction

Rupert Murdoch, chairman of News Corp and co-chairman of 21st Century Fox, arrives at the Sun Valley Resort of the annual Allen & Company Sun Valley Conference, July 10, 2018 in Sun Valley, Idaho. (AFP)
Updated 23 September 2018
0

Comcast outbids Fox with $40 billion offer for Sky in auction

  • Disney agreed a separate $71 billion deal to buy most of Fox’s film and TV assets, including its existing 39 percent stake in Sky, in June and would have taken full ownership after a successful Fox takeover

LONDON: Comcast beat Rupert Murdoch’s Twenty-First Century Fox in the battle for Sky on Saturday after offering 30.6 billion pounds ($40 billion) in a dramatic auction to decide the fate of the pay-television group.
The US cable giant bid 17.28 pounds a share for control of London-listed Sky, bettering a 15.67 pounds-a-share offer by Fox, Britain’s Takeover Panel said.
Buying Sky will make Philadephia-based Comcast, which owns the NBC network and Universal Pictures, the world’s largest pay-TV operator with around 52 million customers.
Chairman and chief executive Brian Roberts has had his eye on Sky as a way to help counter declines in subscribers for traditional cable TV in its core US market as viewers switch to video-on-demand services like Netflix and Amazon .
“This is a great day for Comcast,” he said. “This acquisition will allow us to quickly, efficiently and meaningfully increase our customer base and expand internationally.”
Comcast’s knock-out offer thwarted Murdoch’s long-held ambition to win control of Sky, and is also a setback for US entertainment giant Walt Disney which would have likely been its ultimate owner.
Disney agreed a separate $71 billion deal to buy most of Fox’s film and TV assets, including its existing 39 percent stake in Sky, in June and would have taken full ownership after a successful Fox takeover.
Comcast’s final offer was significantly higher than its bid going into the auction of 14.75 pounds, and compares with Sky’s closing price of 15.85 pounds on Friday.
Comcast believed it needed to deliver a knock-out blow given that Fox’s existing stake in Sky gave it a chance of victory if it was a close second to Comcast, two sources said.
Comcast’s final offer — more than double Sky’s share price before Fox made its approach in December 2016 — quickly won the backing of Sky’s independent directors on Saturday.
“We are recommending it as it represents materially superior value,” said Martin Gilbert, chairman of Sky’s independent committee. “We are focused on drawing this process to a successful and swift close and therefore urge shareholders to accept the recommended Comcast offer.”
Fox will now concede defeat, a source told Reuters.
It is reviewing options for its stake, a holding that stems from Murdoch’s role in the creation of the company nearly three decades ago, the source said.
Fox declined to comment.
Comcast, which requires 50 percent plus one share of Sky’s equity to win control, said it was also seeking to buy Sky shares in the market.

HUGE PRICE
One hedge fund manager who holds Sky shares said nobody could complain about the Comcast price.
“The question now is if Fox actually sells out and if not can Comcast get to 50 percent,” he said.
Another hedge-fund manager said it was a “huge” price, and shareholders would accept it.
Sources familiar with the matter said Fox, Disney and Comcast had not been in discussions about the 39 percent stake.
The quick-fire auction marked a dramatic climax to a protracted transatlantic bidding battle waged since February, when Comcast gate-crashed Fox’s takeover of Sky.
It is a blow to 87-year-old Murdoch and the US media and entertainment group that he controls, which had been trying to take full ownership of Sky since December 2016.
Murdoch’s son James, currently chairman of Sky, was instrumental in building the company into the leading European pay TV group, with operations in Britain, Ireland, Germany, Austria and Italy, and more than 23 million customers attracted to its top-flight sport and entertainment content.
Sky’s chief executive Jeremy Darroch said it was the beginning of a new chapter. “Sky has never stood still, and with Comcast our momentum will only increase,” he said. ($1 = 0.7648 pounds)


Facebook says it stored ‘millions’ of unencrypted Instagram passwords

Updated 19 April 2019
0

Facebook says it stored ‘millions’ of unencrypted Instagram passwords

  • The California firm reaches an estimated 2.7 billion people with its core social network, Instagram and messaging applications

SAN FRANCISCO, US: “Millions” of Instagram users had their passwords stored in unencrypted form on internal servers, Facebook said Thursday, raising its original estimate of tens of thousands.
“We discovered additional logs of Instagram passwords being stored in a readable format. We now estimate that this issue impacted millions of Instagram users,” Facebook said in a blog post.
“We will be notifying these users as we did the others. Our investigation has determined that these stored passwords were not internally abused or improperly accessed,” the social network said.
Facebook, Instagram’s parent company, revealed last month that the unencrypted passwords of hundreds of millions of users had been stored, putting the number of Instagram users affected in the tens of thousands.
The social network’s handling of user data has been a flashpoint for controversy since it admitted last year that Cambridge Analytica, a political consultancy, used an app that may have hijacked the private details of 87 million users.
Facebook has announced a series of moves to tighten handling of data, including eliminating most of its data-sharing partnerships with outside companies.
The California firm reaches an estimated 2.7 billion people with its core social network, Instagram and messaging applications.