Sky and BT shares on the up after Premier League auction
In total, the media giants stumped up nearly £4.5billion so that BT Sport and Sky Sports will screen the lion's share of 200 games for each season between 2019 to 2022.
After more substantial gains this morning, Sky's share price settled 2.19 per cent up at 1,084.25p, and BT Group up 0.39 per cent at 226.73p.
Time to celebrate: Shares in Sky and BT are on the up after the telecoms giants successfully snapped up broadcasting rights to a string of Premier League football matches
The sum of money the Premier League raised through the bidding process is less than the £5.1billion they netted in 2015 and two packages to broadcast 20 mid-week matches are still up for grabs for around £9.3million each.
Sky Sports bought four packages to screen 128 matches per season, while BT Sport snapped up one package to screen 32 matches per season.
While Sky will pay around £600million less than it has done in the past for the broadcasting rights, BT Sport are paying more.
George Salmon, an equity analyst at Hargreaves Lansdown, said: 'There's two packages still up for grabs, but so far Sky is the big winner from the Premier League auction.
'Securing more games at a lower cost is a major coup, and with BT seemingly content to play second fiddle on the Premier League, that rivalry now looks to have thawed.
'There's always the chance the remaining two packages spring a surprise, but with reserve prices not yet reached, it's safe to say Amazon, Netflix and other potential new entrants aren't prepared to adopt the aggressive strategy Sky execs must have feared.'
Sky's success in the broadcasting stakes follows a turbulent few months triggered by an attempt by Rupert Murdoch's 21st Century Fox to buy the 61 per cent slice of the group it does not already own.
Deal: In total, BT Sport and Sky Sports stumped up nearly £4.5billion to screen the lion's share of 200 games for each season between 2019 to 2022
In future, Sky also faces the prospect of being snapped up by Walt Disney if a $66billion takeover of Fox's entertainment assets, which includes Sky, gets the green light.
Mr Salmoln said: 'All this means Sky looks much healthier than when Rupert Murdoch's 21st Century Fox first bid for the business.
'In early trading the shares touched £10.95, 20p ahead of the price Fox has agreed to pay. This tells us Murdoch might need to come back with an improved offer.'
Hedge fund manager Crispin Odey, who has a stake in Sky, has long argued that Fox should be stumping up more for Sky.
He said: 'It looks like they’re not going to get it at the original price. Our view is they won’t get it for less than 13.40 pounds.'
Broadcasting rights: Sky won four of the packages, with BT earning the rights for the other