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London: US media giant Comcast offered Wednesday to buy British broadcaster Sky for £22 billion ($40 billion), topping a controversial bid from Rupert Murdoch's 21st Century Fox.
The move opened up the possibility of a bidding war for Sky, whose stock spiked 4.4 per cent to £13.63 pounds on the news of the offer. Sky immediately withdrew its recommendation to its shareholders to accept the Fox bid.
Fox, controlled by Rupert Murdoch's family, has faced hurdles trying to buy the parts of Sky it doesn't already own.
"As a result of the announcement of this higher cash offer, the Independent Committee is withdrawing its recommendation of the offer announced by [21st Century Fox] on 15 December 2016 and is now terminating the co-operation agreement entered into with [21st Century Fox] on the same date," Sky said in a statement.
Sky is based in London but has strong news and pay-TV operations across Europe, and is particularly prized for its sports broadcasting operations, including the English Premier League matches.
"With its 23 million retail customers, leading positions in the UK, Italy, and Germany, and its history of strong financial performance, we see significant opportunities for growth by combining our businesses," said Brian Roberts, Comcast's CEO.