On September 24, 2018, Comcast (CMCSA  ) finally outbid 21st Century Fox (FOXA  ) and its backer, Disney (DIS  ) for control of European broadcaster Sky.

The winning bid was $22.65, valuing Sky at $40.1 billion - a huge increase from Comcast's prior offer of $19.24 and double Fox's initial bid in 2016. News of the acquisition boosted Sky's stock by 8.6%, but Comcast shares were down over 7% due to investor concerns that the company's bid was overinflated.

Comcast investors are not "happy" because it's hard to tell "how Comcast will be able to dramatically increase earnings with Sky," according to BTIG media and technology analyst Rich Greenfield, particularly since satellite video may soon be obsolete. Sky is mainly attractive because it would provide entry into the European market and help shore up power against competitors like Netflix (NFLX  ) and Amazon (AMZN  ). Comcast CEO Brian Roberts seemed enthusiastic about the bid, saying it will allow Comcast to "quickly, efficiently, and meaningfully increase [their] customer base and expand internationally."

All's not lost for Comcast shareholders: Sky shareholders have until October 11 to reject the bid, so it's possible the deal might fall through. Still, it seems likely to happen, especially since a committee of independent directors at Sky have recommended that shareholders accept the deal.

Fox must now decide what to do with its 39% stake in Sky, which it had planned to sell to Disney in a bundle with other assets. Some have speculated that Disney could swap the 39% stake for Comcast's 30% stake in the Hulu streaming service. "Presumably both Disney and Comcast will find that it is in their mutual best interests to allow each party to consolidate as much of Hulu and Sky, respectively, as possible," said Brian Wieser, a senior research analyst at Pivotal Research Group.