Comcast formalizes its $31 billion bid for British broadcaster Sky

  • Comcast submitted a 22 billion pound ($31 billion) offer for pay-TV group Sky on Wednesday,
  • The bid challenges a lower takeover offer from Rupert Murdoch's Fox.
  • Comcast said it will continue to engage with the Sky's independent directors with a view to obtaining a recommendation for its deal.

U.S. cable company Comcast submitted a 22 billion pound ($31 billion) offer for pay-TV group Sky on Wednesday, challenging an already agreed but lower takeover bid from Rupert Murdoch's Fox.

Comcast, which first outlined an offer at the same 12.50 pounds-a-share price in February, said it would continue to engage with the Sky's independent directors with a view to obtaining a recommendation for its deal.

Twenty-First Century Fox, which already owns 39 percent of Sky, said it remained committed to its recommended cash offer for Sky announced on Dec. 15, 2016, and was currently considering its options.

"A further announcement will be made in due course," it said.

Labor leader Jeremy Corbyn speaks during a live TV debate on June 20, 2016 in London, England.
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Labor leader Jeremy Corbyn speaks during a live TV debate on June 20, 2016 in London, England.

Fox's 10.75 pounds-a-share deal has been held up to scrutiny by regulators, who have concerns about the influence Murdoch could wield through owning all of the broadcaster as well as his British newspapers.

In the meantime, Fox has agreed to sell many of its TV and film assets to Disney, including its stake in Sky.

Comcast, the owner of NBC, CNBC, and Universal Pictures, said it was delighted to be formalizing its offer.

"We have long believed Sky is an outstanding company and a great fit with Comcast," said Chairman and Chief Executive Brian L. Roberts. "Sky has a strong business, excellent customer loyalty, and a valued brand."

Separately, Comcast reported earnings and revenue that topped expectations.

—CNBC contributed to this report.