Comcast drops bid for Fox to focus on Sky acquisition

By Ovunc Kutlu

NEW YORK (AA) - The world's largest television cable company, Comcast, announced Thursday that it is dropping its bid for Twenty-First Century Fox, and will instead focus on acquiring the Sky group.

“I’d like to congratulate Bob Iger and the team at Disney and commend the Murdoch family and Fox for creating such a desirable and respected company," Comcast Chairman and CEO Brian L. Roberts said in a statement.

Comcast stock price rose 3.7 percent to as high as $35.29 on Wall Street after the announcement, while Fox stock value fell to $45.71 a share -- a 2.1 percent loss.

After Comcast offered $65 billion for Fox last month, the following week The Walt Disney Company sweetened its proposal for Fox by raising its offer to $71.3 billion, from $52.4 billion in December.

At the end of last month, the Justice Department approved Disney's proposed acquisition of Fox with the condition that Disney to divest 22 regional sports networks Fox has.

Comcast also increased its offer for Sky group to £14.75 per share, or $34 billion, last week, right after Fox offered £14 a share for Sky.

Twenty-First Century Fox owner Rupert Murdoch and his family hold 39 percent stake in the Sky group through Fox.