In its latest deal, Sky’s the limit for Comcast (quite literally), but did it pay too high a price for it? On Saturday, the U.S. cable television giant outbid 21st Century Fox at an auction to acquire European pay-TV broadcaster Sky Plc. At the end of three rounds of bidding, it was decided that Comcast will acquire Sky at £17.28 ($22.65) per share, thereby valuing the latter at around £30.6 billion ($40.1 billion).
Comcast shareholders/investors are reportedly concerned that the company might have paid too high a price (more than twice Fox's initial bid in December 2016) for the acquisition. Comcast shares fell -7% in New York. Sky's stock, on the other hand, moved up +8.6% to £17.22 ($22.58) in London.