US bank: “Comcast will win Sky bid”
March 9, 2018
By Chris Forrester
Investment analysts at Wells Fargo bank say in a note to clients that Comcast will likely prevail in the bidding war for the assets of Sky.
The bank also suggests there’s plenty of benefit still to flow to existing shareholders in Sky and prices the possible final payment level of £14.50 per share (Sky is currently trading at about £13.44). Indeed, Marci Ryvicker from Wells Fargo, in her forecast says that while her money is ultimately on Comcast, there will still be a fight from Disney in its approach with 21st Century Fox (where the two are engaged in a merger agreement).
Ryvicker adds that Comcast’s interest in Sky is much more of a strategic move than for Disney, and would deliver valuable EBITDA growth for Comcast.
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