Sky, Fox agree $14.8bn takeover

European satcaster Sky has agreed to sell the remaining 61% of its business not owned by 21st Century Fox to the US media giant for £11.7bn (US$14.8bn).

Rupert Murdoch

Under the terms of the acquisition, Sky shareholders will be entitled to £10.75 in cash for each Sky share.

News of the renewed bid broke last Friday and the companies issued a statement this afternoon saying a formal bid has been tabled.

Media mogul Rupert Murdoch, executive co-chairman at 21st Century Fox, has been eyeing full ownership of the pay TV giant for many years, but various events – including the phone-hacking scandal that hit his newspaper business in 2011 – had scuppered his plans.

Now, with his son James overseeing 21st Century Fox and serving as Sky chairman, the company finally looks set to take full control of Sky’s recently aligned operations in the UK, Germany and Italy, in which Fox currently owns a 39% stake.

The latest move is subject to regulatory approval, with UK culture secretary Karen Bradley having 10 working days to decide if the deal raises public interest concerns around media plurality. She can refer the deal to media regulator Ofcom if so.

A Fox statement read: “As the founding shareholder of Sky, we are proud to have participated in its growth and development. The strategic rationale for this combination is clear.

“It creates a global leader in content creation and distribution, enhances our sports and entertainment scale, and gives us unique and leading direct-to-consumer capabilities and technologies. It adds the strength of the Sky brand to our portfolio, including the Fox, National Geographic and Star brands.”

“The enhanced capabilities of the combined company will be underpinned by a more geographically diverse and stable revenue base. It will also create an improved balance between subscription, affiliate fee, advertising and content revenues. This combination creates an agile organisation that is equipped to better succeed in a global market.”

The acquisition is subject to a number of pre-conditions and conditions, including the receipt of regulatory approvals and the approval of Sky’s shareholders.

Leading analysts said last week that Fox is likely to succeed in the proposed takeover, with programme licensing and development “synergies” at the heart of the deal.