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, , Editor-in-Chief, Light Reading