Rupert Murdoch’s 21st Century Fox to buy out Sky for $14.8 bn

NEW YORK: 21st Century Fox said on Thursday that Sky had agreed to a takeover offer worth USD 14.8 billion as tycoon Rupert Murdoch bids to create a global media giant.

Twenty-first Century Fox Inc. is an American multinational mass media corporation based in Midtown Manhattan, New York City

Murdoch’s Fox group said in a statement “that it has reached agreement with Sky plc 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 pounds (USD 13.40) per Sky share, or USD 14.8 billion (14.2 billion euros) 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 organization 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 including 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.