Analyst Craig Moffett said he is still not convinced of Skys financial and strategic value to Comcast
By Jenny Priestley
Published: June 30, 2020
Analyst Craig Moffett said he is still not convinced of Sky's financial and strategic value to Comcast
target=_blank title=Share on LinkedIn class=share-linkedin> Analyst Craig Moffett said he is still not convinced of Sky's financial and strategic value to Comcast
https://www.tvbeurope.com/business/rationale-behind-comcasts-acquisition-of-sky-remains-a-mystery-says-analyst title=Share via Email class=share-email>
Leading media analyst Craig Moffett has said he still doesn't understand why Comcast spent $40 billion on acquiring Sky.
In a note to investors, the MoffettNathanson analyst said he is still not convinced of the deal's financial and strategic value to Comcast.
The rationale for its place in the Comcast portfolio remains a mystery, said Moffett in a note to investors. Given everything going on in traditional media, we think the burden of proof remains on Comcast to prove the value of Sky.
Comcast beat Disney to acquire Sky in September 2018, eventually paying $48 billion (total enterprise value) for the broadcaster. According to Moffett that figure was 16 times enterprise value to earnings before interest, taxes, depreciation and amortisation (EBITDA) multiple that represented a near tripling from the roughly six times multiple at which the shares had been trading just a year before.
In dollar terms, the business is, by our estimate, worth something like $10.5 billion today. With the cash Sky has generated for Comcast since the acquisition, the total value since deal rises to just under $12 billion, added Moffett.
Net of the free cash generated since the acquisition, that $36 billion of value destruction in such a short period amounts to nearly $8 per share.
Moffett stated that Sky is running well, but it remains a legacy media business, and has been strongly impacted by the coronavirus pandemic due to both the cancellation of live sports events and the UK advertising market utterly imploding. He did go on to note that as football returns in both Germany and the UK, it's easier to control getting that revenue stream back online.
These COVID-related pressures have exacerbated, and accelerated, the longer-term secular concerns that we and so many others had even when the deal was first announced, continued Moffett. Sure, there are some important differences between the UK and US pay-TV markets. But video is being fundamentally disrupted by Netflix and Amazon and a growing ensemble of well-funded, direct-to-consumer focused SVoD entrants globally.
The fact that Sky was then, and remains today, a well-run asset, was actually a negative, not a positive, as it left little room for obvious improvements, he added.
What remains more than anything else is the open question of strategy for Sky, Moffett concluded. What did they originally intend to do with it when they bought it and what do they intend to do with it now? It is hard to imagine that they bought it at the price they ultimately paid simply because they thought it was a better business than the market thought it was. Did they ever plan the pivot to a pan-European, or global, even, OTT service? If they did, do they still? If not, what changed?
SubscribeFor more stories like this, and to keep up to date with all our market leading news, features and analysis, sign up to our newsletter here.
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
16/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
16/07/2026
Zixi, a leader in live video delivery and workflow orchestration, and Comcast Technology Solutions (CTS) today announced a strategic new integration to deliver ...
16/07/2026
Blackmagic Design Cameras Capture Immersive Flight for New Cirrus App
Brie Clayton July 15, 2026
0 Comments
Leader in Personal Aviation taps URSA Cin...
16/07/2026
XenData Announces LTO Archive Appliances with both File and S3 Object Storage In...
15/07/2026
The 2026 FIFA World Cup is a big deal for DAZN, which has distribution rights in three markets: Italy, Spain, and Japan. Each requires a different editorial app...
15/07/2026
As sports-media organizations manage rapidly growing content libraries and incre...
15/07/2026
HBS director of digital Johannes Franken talks SVG Europe through the operation built to serve FIFA World Cup 2026 rights holders remotely from Stratford, east ...
15/07/2026
IBC has unveiled the conference program for IBC2026, with this year's event ...
15/07/2026
Software-defined wideband RF platform supports 96-kHz monitoring, streamlined fr...
15/07/2026
New AI-powered module enables broadcasters and content owners to extract dialogu...
15/07/2026
Weeklong gathering at EBU headquarters will test new IPMX capabilities and expand certified product ecosystem...
15/07/2026
Force Tech has announced the appointment of Bryan Adams, CTS, as Vice President of Integration. Adams will oversee AV and broadcast integration project delivery...
15/07/2026
USA Sports has announced an exclusive English-language agreement with the Bundes...
15/07/2026
ITV Sport's FIFA World Cup 2026 coverage has been produced from one of the m...
15/07/2026
Program will provide professional camera kits, training, and technical support to participating local newsrooms...
15/07/2026
San Francisco church becomes first U.S. deployment of the 2 M/E production switcher...
15/07/2026
Former ESPN and NFL Network executive to advise startup league on media, distribution, technology, and fan engagement...
15/07/2026
The Houston-based RSN is the live-game home of the Astros and Rockets...
15/07/2026
Launched alongside new FreqSoft installer
Designed to bridge the gap between hardware and software, Freqport's FreqInOut FO1 unit provides a simple way ...
15/07/2026
Save up to 55% on software until 23 July 2026
Expressive E have just launched their Summer Offer sale, with discounts of up to 55% now applied across their ...
15/07/2026
Real-time stem-separation tool updated
zplane have recently released a new and improved version of their real-time stem-separation plug-in which they say ma...
15/07/2026
A new benchmark in bass enhancement
Described as a new benchmark in bass enhancement , Baby Audio's latest release has been designed to augment the lo...
15/07/2026
DMC Production's AR 1 and AR 2 units reverse the conventional OB workflow, keeping all production-critical processing at the venue while operators work remo...
15/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/07/2026
GigaCloud, a leading Ukrainian cloud service provider, and Cubbit, the first geo-distributed cloud storage enabler, today announced a new Business Alliance Part...
15/07/2026
SMPTE, the global society for media professionals, technologists, and engineers, has announced the launch of the SMPTE 110th Anniversary Campaign, a fundraising...
15/07/2026
Studio Technologies, a leading manufacturer of high-quality audio, video, and fiber-optic solutions, unveils the new StudioComm Model 762 Stereo Level Control, ...
15/07/2026
COW Jobs: Producer, Virtual Events - Hybrid, Full Time, Salaried
Brie Clayton July 15, 2026
0 Comments
Producer, Virtual Events (Hybrid | Full-time | ...
15/07/2026
Brazilian media organization builds nationwide CDN with Broadpeak's high-performance software for low-latency streaming and new content distribution service...
15/07/2026
DHD announces a new utility designed to increase the efficiency of its audio mixing systems during initial installation and subsequent configuration.
Anyone w...
15/07/2026
BCNEXXT Brings Next-Generation Vipe to IBC2026, Breaking the 1:1 Channel-to-Server Ratio New innovations liberate broadcasters from legacy playout infrastructur...
15/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/07/2026
General-purpose robots and autonomous machines are moving from research labs to ...
15/07/2026
Wednesday 15 July 2026
Screeners and press pack now available: Gomorrah: The Or...
15/07/2026
Trinity's Treasures features Ruth Negga, Eleanor McEvoy, and David Norris, a...
15/07/2026
Join geographer Dr Susan Hegarty, Engineer Tim Joyce and Architect Orla Murphy a...
15/07/2026
Home to leading manufacturers, robotics pioneers, infrastructure builders and iconic gaming companies, of course, Japan is one of the world's centers of AI ...
14/07/2026
South end zone videoboard, cloud-based control system will be ready for 2026 football season...
14/07/2026
Redesigned website, enhanced mobile app unify content, ticketing, and personalized fan engagement...
Analyst Craig Moffett said he is still not convinced of Skys financial and strategic value to Comcast
