Freshfields Bruckhaus Deringer and Davis Polk & Wardwell have landed pivotal roles as Comcast seeks to disrupt an existing bid from Rupert Murdoch’s 21st Century Fox to buy out European satellite broadcaster Sky.
The London-based Freshfields team advising Comcast comprises M&A partners Julian Long and Alison Smith, City competition partners John Davies and Michele Davis, and London employment partner Alice Greenwell.
Davis Polk is continuing its relationship with long-term client Comcast with a team led by Tom Reid, backed by London corporate partner Will Pearce and fellow New York partner Brian Wolfe. The latest mandate follows a fruitful 2017 between Davis Polk and Comcast, with Davis Polk advising on its acquisition of a majority ownership of Craftsy and a $5.5bn exchange deal with NBCUniversal Media. However, Comcast’s Sky bid, which stands at £12.50 per share, is likely to be subject to heavier scrutiny, with Fox intervening to urge regulators in London and Brussels to investigate competition concerns.
Any potential deal will prove lucrative, with Sky remaining Europe’s largest pay TV operator, producing £1.5bn in operating profit. Fox had been aiming to complete its takeover of Sky by the end of June. However, should Comcast’s bid gain approval, the likelihood of the Murdoch bid being successful at its current price of £10.75 per share is diminished. For Comcast, the deal represents the opportunity to strengthen its European presence and become the world’s largest pay TV operator.
The primary focus will be navigating the scrutiny of regulators to ensure the bid can be presented to shareholders around the same time as Fox in June or July. Fears the bid could be hindered may be well founded, as almost three years ago Comcast abandoned a deal for US-based Time Warner Cable for fears it would be blocked by regulators.
Fox, meanwhile, will be advised by an Allen & Overy team led by co-head of antitrust Antonio Bavasso, corporate partner David Broadley, and M&A partners Seth Jones and Simon Toms.