New York-based Twenty-First Century Fox has bid more than $14.1 billion to take control of British broadcaster Sky. Jeanne Yurman reports.
Speculation that Twenty-First Century Fox would make a move to own European pay-TV group Sky has been confirmed. The British broadcaster says Rupert Murdoch's media company has bid $14.1 billion - a 36 percent premium- for the shares of Sky that it does not already own. It's current stake - slightly more than 39 percent. The drop in the euro makes this a less expensive deal and strategically it greatly extends Fox's reach says Reuters deals editor Greg Roumeliotis. SOUNDBITE: GREG ROUMELIOTIS, DEALS EDITOR, REUTERS (ENGLISH) SAYING: "Fox has a major media business that produces a lot of content and they can use Sky's direct consumer platform to basically distribute that not just in Britain but across Europe." And that's key in a fiercely competitive media world. Tying distribution together with content is the current strategy as witnessed with AT&T's takeover if Time Warner earlier this year. Such a bid values the UK company at nearly 18.5 billion pounds or almost $23 and a quarter billion dollars U.S. Anticipation of a Fox bid has been building since Fox Chief Executive James Murdoch was named Sky's chairman in January.