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21st Century Fox Bids £18B for Sky

Rupert Murdoch's US media giant 21st Century Fox has tabled a bid worth £18 billion ($22.6 billion) for European pay-TV and comms services firm Sky plc, in which it already holds a 39.1% stake, the two companies announced Friday.

An offer price of £10.75 per share in cash has been agreed upon but the two companies say that there are still details to be worked out and that a full offer may not follow. But it seems likely it will.

Investors certainly think it will lead to a formal offer: Sky's share price leaped almost 27% to £10.00 after the news was announced.

British Sky Broadcasting Group plc has 22 million customers across the UK, Ireland, Germany, Austria and Italy, with pay-TV services its prime, and best known, service, though it is also a significant broadband services provider, particularly in the UK. It has more than 30,00 staff, has facilities in 32 locations and reported £12 billion ($15.1 billion) in revenues and £1.6 billion ($2 billion) in operating profit in the financial year that ended June 30, 2016.

Movies and TV giant 21st Century Fox , which is run by Rupert Murdoch and his sons, reported revenues of $27.3 billion and operating income of $4.2 billion for the financial year ending June 30, 2016. Its share price dipped slightly, by 0.3%, to $28.55 on the news.

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

[email protected] 12/9/2016 | 1:59:22 PM
Not the first time Murdoch has set his sights on Sky Rupoert Murdoch tried to take full control of Sky previously, using News Corp. as the vehicle.

21st Century Fox is the successor to News Corp - but without the UK newspaper assets that includes the disgraced rags that were involved in phone hacking.

So now Murdoch's having another go... my guess is that he feels he won't face the regulatory and political hurdles he encountered last time. 

Sky was Murdoch's creation, originally, but he lost control of it when there was consolidation in the UK satellite TV sector in the late 1980s. He clearly has always wanted to own it again... how much for personal rather than just pure business reasons isn't so clear.
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