The media giants 21st Century Fox and Comcast will compete in a one-day for the acquisition of the assets of the British television company Sky. The auction will start officially on Friday night and will end the next day with a maximum of three rounds of bids.
In the first round, the company with a lower bid, Fox, will be able to offer a more competitive offer, which will be followed by the corresponding Comcast response.
Sky, Fox, Comcast and Disney agreed to the auction in question to determine the company that will acquire the British operator.
Disney can gain control of Sky if Fox still succeeds in winning the bidding.
In such auctions, the bidders submit proposals to a third party arbitrator and, while this method is relatively often used in commercial transactions, the purchase of such a serious public company is considered as an exception.
Sky is estimated at 27 billion GBP or 35 billion USD, considered as a prestigious asset for the US media corporations that seek to enter on the European market, taking advantage of British TV products.
For now, Fox’s offer is 32.5 billion USD, while Comcast’s bid is for 34 billion USD.
Fox already has a 39% stake in Sky after a deal in December 2016.
The bidding began in July when Comcast withdrew from the battle to acquire Fox’s assets from Disney.
On the other hand, British regulators are following Fox’s actions, fearing that if the company succeeds in acquiring Sky, it will seriously increase the influence of the Rupert Murdoch on the European media market.