US cable company Comcast Corp has made a STG22 billion ($A40.55) offer for pay-TV group Sky, beating an already agreed takeover bid from Rupert Murdoch's Fox by 16 per cent.
Comcast, which first proposed an offer at the same STG12.50-a-share price in February, said it would continue to engage with the Sky's independent directors with a view to obtaining a recommendation for its deal.
Comcast said its cash offer is to buy the remaining 61 per cent of Sky it does not already own.
The group added that it plans to agree a raft of legally-binding commitments over Sky and its investment in the UK, in particular for Sky News, while it also said it would commit to keeping the group's Osterley headquarters for at least five years.
The bid is yet to be given the backing of the Sky board, but Comcast said it was in talks with the Sky Independent Committee "with a view to obtaining a future recommendation of the acquisition".
Brian Roberts, chairman and chief executive of Comcast, said: "With its 23 million retail customers, leading positions in the UK, Italy, and Germany, and its history of strong financial performance, we see significant opportunities for growth by combining our businesses."
"We also understand the role that Sky plays in UK society and in its customers' lives and we are determined to be responsible and trusted owners of Sky."
Sky withdrew its recommendation for the Fox deal following Comcast's offer, but stressed that both bids are "subject to pre-conditions and neither offer is currently capable of being put to shareholders".
It added its independent committee will "co-operate fully" with both suitors.
Murdoch's 21st Century Fox said it was "considering its options", but "remains committed to its recommended cash offer for Sky".
Fox already owns 39 per cent of Sky and made a bid to take full control of the group in December 2016.
But the UK competition watchdog has raised a host of concerns over the Fox acquisition, while since then, Walt Disney has also agreed to snap up a raft of Fox assets including the Sky 39 per cent stake.
