What is going on with cable and satellite ?

I don’t follow Comcast, and I doubt that I will in the future. But the cash bid for Sky of around USD40 billion is interesting. Bearing in mind the growth of Roku, the deal looks to me like the old guard of cable and satellite combining to see what they can make of existing subscriber and relationship numbers. What is also interesting is that Rupert Murdoch’s interests are effectively cashing in their satellite interests in a Europe – they did offer 1075p per Sky share a few years
but have recently contracted to sell 21st Century Fox to Disney and were underbidders for Sky acting as agents for Disney. Sky is sold to Comcast at 1728p per share.
As far as I can see, Comcast’s subscriber numbers of circa 22 million have been falling, and Sky’s 23 million household connections have been slowly rising. Both companies also spin out meaningless figures for numbers of relationships.
My first thought is that Comcast’s debt will rose from around USD59 billion to USD99 billion, not ideal if the business starts to shrink. My second thought is that looking after so many extra customers gives management the opportunity to rearrange their compensation before the numbers worsen and 5G becomes the norm. My third thought is that Murdoch interests have in general been keen to invest in new media areas. They even tried to compete with Facebook, not such a bad idea at the time. So if new media moves away from cable and satellite towards companies like Roku, they will have enough cash and experience to become involved.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.