Walt Disney Co. (NYSE: DIS) was outbid by Comcast (NASDAQ: CMCSA) in bidding war for British telecommunication company Sky on the 22nd of September. Comcast out-bid Disney by USD 3.6 Billion in a three-round auction process with a total bid of USD 38.8 Billion. Disney, which bought 21st Century Fox early this summer began today’s trading at USD 116.00.
Disney is thought to have dodged a bullet by losing the bid as many analysts wondered how the European direct broadcasting satellite business would contribute to Disney growth strategy. Riley, an analyst at Barton Crockett, found the result beneficial as he believes that if Disney had won they would have “enter a competitive European pay TV business that [is] removed from its core content [and] theme park wheelhouse.” The Monday following Comcast’s winning bid, Disney reported a 2% price jump while Comcast saw its stock price fall.
As of October 2nd, Disney has announced plans to sell their 39% stake in Sky to Comcast for USD 15 Billion. Disney, which brags holdings of Marvel, Lucasfilm Ltd, American Broadcasting Company (ABC) and ESPN, reported 3rd Quarter earrings for their media networks operating segment increased revenues by 5% to USD 6 Billion. However, profits did fall dropped in the 3rd Quarter by 1% to USD 1.8 Billion.