Rupert Murdoch’s 21st Century Fox and Sky have reached an agreement that will see Fox take full ownership of Britain’s biggest pay-TV broadcaster.
21st Century Fox already owns a 39% share in Sky; however, on Thursday (15 December) the corporation put in a formal offer of £11.7 billion to buy the remaining 61%.
The deal will give Fox control of more than 22 million households across Britain, Ireland, Austria, Germany and Italy, while Sky shareholders will receive £10.75 in cash for each share – valuing the company at £18.5 billion.
Martin Gilbert, deputy chairman of Sky, said 21st Century Fox has a track record in growing businesses and notes its ability to “continue the development of Sky across Europe, in a world where entertainment and distribution are converging.”
21st Century Fox said: “As the founding shareholder of Sky, we are proud to have participated in its growth and development.
“The strategic rationale for this combination is clear. It creates a global leader in content creation and distribution, enhances our sports and entertainment scale, and gives us unique and leading direct-to-consumer capabilities and technologies.
“It adds the strength of the Sky brand to our portfolio, including the Fox, National Geographic and Star brands.”
The deal will need to gain regulatory approval, and there is a chance the culture secretary, Karen Bradley, will argue the takeover will impact media plurality and is therefore not in the interests of the public. Bradley has 10 working days to file any concerns.
Murdoch initially tried to buy Sky back in 2011 but the offer was withdrawn in the wake of the phone hacking scandal.
