Comcast stock tanks after company strikes $40 billion deal to buy Sky

(credit: Comcast)

Comcast on Saturday won an auction to purchase Sky, the UK-based media and telecom company, with a $40 billion bid that topped an offer from 21st Century Fox. Sky on Monday recommended that its shareholders accept the offer from Comcast before a deadline of October 11.

"This is a great day for Comcast," Comcast CEO Brian Roberts said in an announcement. "This acquisition will allow us to quickly, efficiently and meaningfully increase our customer base and expand internationally."

Comcast stock was down about 7 percent this morning, as investors are reportedly worried that Comcast paid too much for Sky.

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