TAKEOVER BID

21st Century Fox

21st Century Fox announces US$14.8 billion deal to take over Sky

PUBLISHED : Thursday, 15 December, 2016, 10:14pm
UPDATED : Thursday, 15 December, 2016, 10:39pm

21st Century Fox said Thursday that Sky had agreed to a takeover offer worth US$14.8 billion as tycoon Rupert Murdoch bids to create a global media giant.

Murdoch’s Fox group said in a statement “that it has reached agreement with Sky on the terms of a recommended pre-conditional cash offer” to buy the rest of the European pay broadcaster, beyond the 39 per cent it already owns.

The deal is worth £10.75 (US$13.40) per Sky share, or US$14.8 billion (14.2 billion) in total for the cash purchase, the statement said.

“As the founding shareholder of Sky, we are proud to have participated in its growth and development,” 21st Century Fox said in its statement.

“The enhanced capabilities of the combined company will be underpinned by a more geographically diverse and stable revenue base,” the company said.

“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.”

21st Century Fox is one of the world’s largest entertainment companies, with a vast portfolio of cable, broadcast, film, pay TV and satellite assets across six continents.

Its broadcasting and cable properties include Fox, Fox News Channel, Fox Business Network, National Geographic Channels, STAR India, 28 television stations in the United States and more than 300 international channels.