Final countdown: How the thrilling conclusion of the Sky takeover saga could pan out
A near two-year takeover saga for Sky is approaching a stunning finale this weekend – and the city will be watching on in suspense as it could come to a thrilling conclusion.
It's been a long and drawn out affair which started back in December 2016, when 21st century Fox first struck a $14.6bn deal to buy Sky.
But with a key takeover deadline approaching on Saturday, we could know in a matter of days who the new owner of Sky will be.
What's happened so far?
Comcast and Fox are battling it out for Sky. Fox upped its offer to £25.4bn in July, prompting Comcast to almost immediately raise its own offer from £22bn to £26bn.
No other bids have been tabled yet, and it's unlikely either side will budge from their current offers.
The deal is also going on in the shadow of a much larger battle which has already reached its conclusion – Disney's takeover of Fox. Comcast had been competing to buy Fox, but dropped out in July to focus on the Sky deal.
As it controls Fox, and its 39 per cent stake in Sky, if Fox's bid is successful Disney will have full ownership over Sky. Comcast will be desperate to spoil the party, however, after losing out on the Fox race.
What happens next?
On Saturday afternoon, a deadline for Fox and Comcast to raise their offers will expire. If neither side has put down a firm offer by then, the race will go to an auction run by the Takeover Panel.
This is a highly unusual way of deciding which company wins, but it's understood both sides are not going to budge on their current offers, while Sky shareholders are not going to accept either bid just yet, as they're holding out for an even higher offer when it goes to an auction.
How will the auction work?
Comcast, Fox and the Takeover Panel are currently discussing terms of the Sky auction. One possibility is a "sealed bid" auction, which means both sides would submit closed offers and not know how much each other bid.
However, it could still be decided by open bids or a mixture of the two, according to Bloomberg.
Read more: 21st Century Fox extends deadline for Sky to vote on £24.5bn offer
When will it come to an end?
The auction will last up to five days depending on how it is structured. It could come down to a one-day auction on Saturday, but standard Takeover Panel procedure usually takes about five days to finish.
After the auction, Sky investors will then have until October 6 to vote on which deal they want to accept. Obviously, it's highly likely they will pick the highest offer on the table.
Bloomberg also said details on the auction could be announced as soon as today.
Why are Comcast and Fox fighting over Sky?
Media companies are currently working to beef up their entertainment assets to compete with streaming giants Netflix and Amazon.
Sky's base of 23m customers, as well as its foothold in Europe offer the American firms a great opportunity to grab new customers quickly, as well as add assets like Now TV to their streaming portfolios.
Read more: Investors buy up Sky shares as takeover saga heads to season finale