Pay-TV business Sky (SKY) is the top riser on the FTSE 100 - up 2.8% to 928p. Reports have emerged that US media giant Comcast is interested in buying assets from 21st Century Fox including its 39% stake in Sky.
Shares in Rupert Murdoch controlled Fox were up 9% after the close in the US overnight. Fox is awaiting the outcome of a Competition and Markets Authority probe into its bid for the 61% of Sky it does not already own.
The CMA is expected to report back by early March.
Against this backdrop Liberum analyst Ian Whittaker reckons there are two potential scenarios for Comcast.
Either it waits for Fox’s takeover of Sky to be approved and then swoops or it buys the 39% stake now and bids for the rest of Sky on the same terms.
This latest speculation follows reports of interest from Disney earlier this month and is accompanied by rumours of interest from Verizon. Whittaker adds:
‘The positive for Sky from all of this is that it shows the major US groups are interested in the asset, demonstrating that many media groups still see the Sky asset as a very valuable one to own.’
‘One other point as well would be that both Comcast and Disney would have a fairly detailed view of the health of the Sky business given both supply channels to Sky,’ the analyst continues.
‘The fact they were/are both interested in the assets suggest that the concerns expressed about Sky's fundamentals may not be as great as is sometimes feared.’
