Latest in Culture

Image credit: JEFF PACHOUD/AFP/Getty Images)

Sky receives takeover bid from 21st Century Fox

The £18.5 billion offer would help consolidate Rupert Murdoch’s media empire.
269 Shares
Share
Tweet
Share
Save

Sponsored Links

JEFF PACHOUD/AFP/Getty Images)

21st Century Fox is in advanced talks to buy Sky, a major telecoms player and the biggest pay-TV provider in the UK. Negotiations are underway and the directors of both companies have reached an "agreement" of £10.75 per share. As Bloomberg reports, the deal values Sky at £18.5 billion ($23.2 billion). Fox already owns 39 percent of Sky, and media mogul Rupert Murdoch has tried to buy the remaining slice before. A takeover in 2010 was eventually abandoned, however, after News Corporation (now known as 21st Century Fox) was embroiled in a huge phone hacking scandal.

While Sky's directors have approved the deal and are willing to recommend it to stakeholders, it's not quite in the bag. In a document announcing the bid, it's stressed that "there can be no certainty that an offer will be made by 21st Century Fox, nor as to the terms of any such offer." That means the provisional agreement is just that -- provisional. For now, anyway.

Sky's media empire stretches further than the UK. In 2014, the company bought Sky Italia and the bulk of Sky Deutschland from 21st Century Fox for £4.9 billion ($8.3 billion). Should the new takeover go through, these businesses would fall back under 21st Century Fox's influence. Its global reach would be considerable, and give the company a large platform to distribute content and services. Before the papers can be signed, however, we suspect some regulatory bodies will want to examine the deal and its impact on competition, both in the UK and on an international stage.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
269 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget’s guide to Home Entertainment

Engadget’s guide to Home Entertainment

View
'League of Legends: Wild Rift' will land on mobile and consoles in 2020

'League of Legends: Wild Rift' will land on mobile and consoles in 2020

View
Riot celebrates ten years of 'LoL' by finally announcing new games

Riot celebrates ten years of 'LoL' by finally announcing new games

View
Watch Tesla's crash test lab wreck Model 3s to make them safer

Watch Tesla's crash test lab wreck Model 3s to make them safer

View
TiVo's 'free' streaming service starts rolling out

TiVo's 'free' streaming service starts rolling out

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr