Receive our latest updates!
Blogg | Mediavision | Affärsutveckling och strategi för medieindustrin

Sveriges bästa företagsbloggar 2017

Enter the age of consolidation – highlighting mergers on the global media market

In this blog post, Mediavision describes the eventful times of consolidation on the global media market, by disentangling the conundrum that is Fox and Sky’s future ownership.

In December 2016, 21st Century Fox made a bid on Europe’s largest pay TV operator Sky to acquire the remaining 61% shares it does not already own of the company. This was the start of what media is referring to as the “bidding war” in which Fox, Comcast and Disney are involved.

Since Fox’ bid on Sky, Disney and Comcast have gotten involved as well. Disney made a $52 bn bid for Fox’ movie and TV sections (including its 39% stake in Sky). Comcast did not only make a bid for Sky (which is 16% higher than Fox’ bid), but also revealed intentions to compete with Disney on acquiring Fox. The proposed mergers are illustrated below.

Figure 1: Current market situation.

Fox’ bid on Sky (in 2016) has been scrutinized by UK:s Ofcom and the Competition and Markets Authority (CMA). The potential merger has aroused lots of discussion, mainly around the greater influence and power that the Murdoch family would gain in British media if the bid is approved. Also, Sky News’ editorial independence under the Fox umbrella has been discussed. The Murdoch family owns 39% in both 21st Century Fox and News Corp, the latter which consists of e.g. the newspapers The Times, The Sun and The Sunday Times. However, earlier this week, the British government announced that if Fox were to sell Sky News to Disney, as proposed by Fox, with an agreement to ensure that Sky News is funded for at least 10 years (also offered by Fox earlier on), it would be an effective remedy for the public interest concerns that have been called attention to. The British Secretary of Culture also allowed the Comcast bid to proceed, meaning that there is a set-up for a bidding war between the American giants. Regardless if Fox/Disney or Comcast acquires Sky, the buying company would reach 23 million new Sky customers in Europe. This would of course make any buyer better prepared to compete with challengers like Netflix and Amazon.

But consolidation and mergers is apparently the name of the current game, also in other media/tech related companies. In the US, discussions between CBS and Viacom are on-going and AT&T and Time Warner are waiting for a green light from the US District Court. Locally, Telia and Bonnier Broadcasting have confirmed discussions of a merger and Tele2 and Com Hem are awaiting approval of their merger – a decision is expected in the second half of 2018. Depending on the outcome of these potential mergers, media companies bigger than Netflix, in terms of market capitalization, could be created.


Figure 2: Potential market formation.

The illustration above points at a possible outcome of the mergers as well as the size of these media giants – in market cap with today’s* value. Acquiring Fox would add highly rated assets to Disney – such as the X-Men franchise and The Simpsons – which of course also would strengthen its planned streaming service. Moreover, Disney would also become the majority owner of Hulu. Disney has earlier announced that it is pulling its content from Netflix, and with these new resources it would be better prepared to compete with Netflix.

For Comcast, an acquisition of Sky means that it would be able to grow, while avoiding government scrutiny associated with expanding its US cable business, as it is the largest American cable provider. Also, Sky’s streaming service Now TV with its 2 million subscribers, would grow Comcast’s OTT footprint. Next week, AT&T and Time Warner will receive a decision on their merger plans – an outcome that is likely to influence if Comcast will make an official bid on Fox or not.

Moreover, with the mentioned potential local mergers, the international trend is seemingly spreading to the Nordic countries as well. Yet, as the illustrations show, there remains a major difference in scale between the local and US/UK-based actors.

*Market cap as of June 1st, in some cases of June 4th.


Youtube Music to increase competition among music streaming services

Läs mer

Melodifestivalen: Beloved “campfire” minimally affected by digital transformation

Läs mer

E-sports continues to grow, but the market is still under construction

Läs mer

Bigger is better, but content still king.

Läs mer

E-sports breaks viewer records and enjoys broadened demographics

Läs mer

Swedish OTT market in focus at Mediavisions breakfast seminar

Läs mer

Influencer marketing going strong and might be in for an upswing

Läs mer

Big changes in media infrastructure, content next?

Läs mer

Eventful 2017 for Swedish gambling market as re-regulation draws closer

Läs mer

Nordic TV market: Consumer transition as market competition abounds

Läs mer

Man vs machine: Youtube, Facebook and the advertiser backlash

Läs mer

AT&T’s purchase of Time Warner, Fox up for sale, and Nordic drama goes global

Läs mer

New gambling regulation could possibly attract operators to move off-shore

Läs mer

Mediavision’s e-sports analysis: Swedish gaming/e-sports viewers prefer DreamHack over LoL WC

Läs mer

Facebook, Snapchat, Google, and Discovery make advances in video while Spotify refocuses their video strategy

Läs mer

Regulatory strike against gambling advertising in Sweden while several gambling companies report strong Q3 results

Läs mer

Com Hem, MTG and Netflix first out of the gates in third quarter earnings season

Läs mer

VR popular area of investment despite slow consumer growth

Läs mer

Localized globalization strategy increasingly apparent among global OTT actors

Läs mer

Foreign based gambling firms’ growth in Sweden driven by casino, but sports betting still important

Läs mer

Digital streaming giants win big at the Emmy Awards and draw closer to releasing Nordic originals

Läs mer

Apple’s newfound focus on AR from a Nordic perspective

Läs mer

Swedish game developers growing rapidly and US TV actors advance on Nordic TV market

Läs mer

Traditional TV actors move into new areas as subscribers turn online

Läs mer

The Nordic TV summer, Facebook launches video services, and Disney’s acquisition of BAMTech

Läs mer

Facebook sänder Champions League, Google gör VR-annonser, och podcastmarknad med stark tillväxt

Läs mer

E-sport & gaming: E3-mässan, sommarens stora evenemang, och fördjupat samarbete mellan ESL och Intel

Läs mer

Sociala medier och rörlig bild, Twitter livesänder politisk debatt och Snap gör drönare

Läs mer

Mediavision analyserar utvecklingen bland aktörer på amerikansk TV-marknad, Q1 2017.

Läs mer

Händelserik start på svenskt spelår: Spelutredning och kasinospel i centrum

Läs mer

5 maj: Discovery Networks, Twitter, MTG, HBO, och Magine

Läs mer

Lokalt kontra globalt i fokus när Mediavision höll frukostseminarium

Läs mer

Bonnier Broadcasting genomför besparingar, Sky och HBO samarbetar, och Facebook satsar på AR 

Läs mer

Annonsörer fortsätter fly Youtube medan Discovery och Spotify satsar mer annonsdrivet.

Läs mer

E-sports event breaks viewing record, Youtube and Facebook ramp up e-sports and gaming investments.

Läs mer

Ny e-sport/gaminganalys, Facebook satsar på sport och Googles annonsintäkter växer

Läs mer

Stark säsong för Melodifestivalen

Läs mer

Gamla och nya medier möts och Snapchat börsnoteras

Läs mer

Transparens bland växande webb-TV-tjänster och blockerad piratkopiering.

Läs mer