The BT Group (LON: BT.A) share price rose by more than 3% as London stocks rebounded and after a company made an offer for its sporting franchise. The stock rose to 162p, making it one of the best performing FTSE 100 stocks on Tuesday.
DAZN makes a bid for BT Sports
BT Group is one of the biggest telecommunication and media companies in the UK. The company provides mobile communication, broadband, and even television services in the country. Openreach, its broadband service, is its fastest-growing brand.
A few months ago, the company announced that it would seek option for its sports business. The announcement triggered interest, including from News Corp’s Rupert Murdoch.
Now, it seems like the sports division will have a new owner. According to the Financial Times, the company could reach an agreement with DAZN in the next few weeks. DAZN is a streaming company owned by Leonard Blavatnik.
If it works, the deal will come several months after it outbid Sky Italia for the rights to broadcast Serie A games. It will also get streaming rights for the English Premier League.
At the same time, exiting the sports broadcasting business will likely be a good thing for the BT share price. For one, it could mean that shareholders will receive a one-off dividend. Also, it will provide the firm with the resources it needs to boost its investments in its Openreach product.
The report comes a few months after Altice’s Patrick Drahi acquired a 12% stake in the company. At the same time, there are speculations that Deutsche Telekom will make a bid for the company. In a recent statement, the company’s CEO said that the firm could make an announcement in the next 12 months.
BT share price forecast
The daily chart shows that the BT share price has been in a major sell-off lately. This decline has seen the stock moved below the 38.2% Fibonacci retracement level. It has also declined below the 25-day and 50-day moving averages. The stock has also formed a descending channel that is shown in blue.
Therefore, in the near term, the shares will likely remain in a bearish trend as sellers eye the 61.8% retracement level at 138p. This view will be invalidated if the price moves above 164p.
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