News Corp to buy Shine for $673m

News Corporation has reached an agreement to acquire Shine Group in a deal that values Elisabeth Murdoch’s global production house at £415m (US$673m).

The deal, which had been expected after Shine last month appointed JP Morgan to advise it on strategic options, sees Rupert Murdoch buying out his daughter’s business and she in turn taking up a seat on News Corp’s board.

News Corp already owns a stake in Shine via its controlling interest in BSkyB, which owns 13% of Shine. Sony owns around 20% of the superindie, with Elisabeth Murdoch (pictured) controlling 60%.

Shine and News Corp have now signed a non-binding agreement that will give the latter 100% of Shine and will now set the wheels in motion to secure the necessary regulatory approval. Shine assets include 25 companies in 10 countries including Reveille in LA, Metronome in Scandinavia and five prodcos in the UK. It turned over US$400m in 2009.

“Shine is a leader in the global television production business with a proven track record of developing hit shows and new formats worldwide,” said News Corp deputy chairman, president and chief operating officer Chase Carey. “We have every confidence that Shine will be an important part of the expansion strategy for our worldwide TV operations.”

“In a rapidly consolidating global TV industry, this alliance uniquely provides the conditions in which Shine Group can continue to lead and prosper,” added Elisabeth Murdoch, Shine Group chairman and CEO. “I could not be happier or more proud that from such modest beginnings Shine will join such an extraordinary group of companies.”

The deal comes as Murdoch Snr awaits a UK government decision on whether or not News Corp’s attempted buy-out of BSkyB, which is chaired by his son James, will be delayed by a referral to competition authorities.