Why Sky Is So Highly Priced

This British pay-TV has become the biggest talk among three different American suitors. Many would consider Sky a smaller version of what many of the biggest media companies in the U.S. are trying to become.

Sky is a telecom operator and media company meaning they sell TV, internet, phone services and still provide their own original news, sports and entertainment programs. The company has already reached beyond the U.K. market with businesses in Ireland, Italy, Spain and Switzerland. Sky is an integrated distribution platform that produces its own content. Many companies are trying to develop the same strategy by offering a smartphone data plan with discounted access to TV shows and sports broadcasts.

AT&T Inc. is already trying to build this pursuit but it’s something Comcast has already built to some extent, though without the international flow that Sky has achieved.

 Sky has also been competing with Netflix Inc. with an internet and TV service called Now TV. Brian Roberts, the chief executive of Comcast Corp., has shied away from launching a nationwide Netflix competitor. He argues it makes more sense for Comcast to focus on serving customers in its cable-service area.

Fox already owns 39% of Sky. It launched a bid to buy the other 61% in December 2016, but is still awaiting regulatory and shareholder approval. Meanwhile, Walt Disney Co., in December agreed to buy the majority of Fox’s assets, including the Sky stake, for $52 billion. But Comcast entered the fray Tuesday, launching a $31 billion bid for all of Sky.