Comcast Could Sell Sky Deutschland at Nearly $1B Valuation

Comcast is reportedly considering a sale of Sky Deutschland that could value the unit at $998 million.

When Comcast posted its third-quarter earnings on Thursday, the media giant reported that lower sales in Germany and Italy offset its gains in the U.K. — and that it took an $8.6 billion non-cash charge on Sky due to “macroeconomic conditions.”

The TV conglomerate — the largest pay-TV provider in the U.S. — acquired Sky DE in 2018 when it purchased British broadcaster Sky for $39 billion.

Sky DE’s portfolio in Germany is shrinking after DAZN recently expanded its footprint in the country. 

• In 2019, DAZN acquired the majority of the UEFA Champions League rights in Germany, replacing Sky DE, which had “20 years of partnership with UEFA.” 
• Last year, DAZN announced plans to roll out DAZN For Business in Germany, its global commercial premises business.

Because of the change in coverage for Sky DE, “there was a negative impact on subscriptions, a loss of possibly 200,000 or 300,000, and on the average spend by subscriber,” said Francois Godard, a media analyst at Enders Analysis.

But Godard added that Sky DE, which includes operations in Austria and Switzerland, is on a financially sustainable path due to declining costs.

Comcast Report

Comcast reported a 1.5% year-over-year decline in third-quarter revenue to $29.8 billion and a net loss of $4.6 billion. Sky posted a 14.7% year-over-year decline in third-quarter revenue to $4.3 billion, but added 320,000 subscribers.