The Downside of Fox's Takeover of Sky
While Twenty-First Century Fox appears to be paying a reasonable price for Sky, we're not wowed by the potential acquisition of a satellite operator at a time when content distribution is increasingly moving online.
Sky announced on Dec. 9 that the company agreed in principle to a preliminary takeover bid from
Strategically, we see both positives and negatives associated with the deal. On the plus side, Sky is one of the leading pay television operators in Europe and produces a large amount of original programming. Further, Sky’s relationship with HBO could also potentially help Fox in the U.K. That said, we are not enamored with the potential acquisition of a satellite operator at a time when content distribution is increasingly moving online.
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