Sky reveals $7.25bn content budget

UK satcaster BSkyB has completed its purchase of Sky Deutschland and Sky Italia and revealed details of the enlarged company’s management structure and a £4.6bn (US$7.25bn) programming budget.

BSkyB agreed to buy its sister platforms in Italy and Germany from Rupert Murdoch’s 21st Century Fox in July and has taken complete control of Sky Italia and a 90% stake in Sky Deutschland at a cost of nearly £7bn.

Jeremy Darroch, CEO at BSkyB, will become group CEO and oversee the enlarged company, alongside his role at the UK-based broadcaster. Andrea Zappia will continue as CEO of Sky Italia and Brian Sullivan remains CEO of Sky Deutschland.

The satcaster added that it would have a combined programme spend of £4.6bn and said the potential for future growth is “significant”, through combining the businesses to “accelerate innovation and grow faster.”

BSkyB claims the group, which will be known as Sky, will serve 20 million customers across Italy, Germany, Austria, the UK and Ireland, and employ 31,000 staff across 30 main offices.

Darroch said Sky had the “opportunity to create a business that can lead and shape our industry in the future” and would be launching unspecified new services and “accelerate innovation” across its markets.

“By joining together, we will share our strengths and expertise while retaining a strong identity in each country where we operate. The opportunity ahead is substantial and we believe the new Sky will be good for customers, content creators and shareholders alike.”

The takeover was first mooted in May and sees BSkyB paying £2.07bn in cash plus its 21% stake in National Geographic Channel for Sky Italia and £4.44bn for Sky Deutschland.

It had initially agreed to buy 21st Century Fox’s 57% stake in Sky Deutschland but upped its holding after agreeing deals with minority shareholders, despite board advice.

The UK satcaster was granted regulatory approval for the acquisition by the European Commission in September.