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RUPERT MURDOCH’S 21ST Century Fox has sealed a $14.8billion (€14 billion) cash deal to take control of pan-European pay-TV giant Sky and create a global entertainment titan.
The Murdoch-controlled Fox group said in a statement that it has reached a formal agreement to buy the 61% stake in Sky that it does not already own.
The deal, valuing Sky at £18.5 billion (€22.1 billion), comes five years after Australian-born media mogul Murdoch failed to clinch a takeover after a notorious phone-hacking scandal at his newspaper empire.
“The strategic rationale for this combination is clear,” 21st Century Fox said in a statement issued in New York.
“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.
21st Century Fox already owns a 39% stake in Sky, whose five main markets are Austria, Britain, Germany, Ireland and Italy.
In addition to Murdoch’s investment in Sky, his interests in Ireland also include the News Corporation-owned The Irish Sun and Sunday Times, as well as radio stations FM104, Cork’s 96FM and others.
‘Enhanced capabilities’
“As the founding shareholder of Sky, we are proud to have participated in its growth and development,” 21st Century Fox added in its statement.
“The enhanced capabilities of the combined company will be underpinned by a more geographically diverse and stable revenue base.
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 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.
Sky broadcasts the 24-hour Sky News channel, blockbuster movies and live English Premier League football, and also provides internet and telephone services.
The bid price represents a premium of 40% from Sky’s closing share price level last Tuesday, the day before an initial proposal was made.
21st Century Fox said that it has long regarded its near-40% stake in Sky as “not a natural end position” for its overall strategy.
Back in 2011, Murdoch was forced to abandon his previous takeover bid of Sky – then known as BSkyB – as controversy raged over the hacking of celebrities and crime victims by his tabloid the News of the World, which was subsequently shut down.
Murdoch’s son, James Murdoch, became Sky chairman in January. He had previously served as chief executive between 2003 and 2007.
In late 2014, Sky changed its name from BSkyB after completing the purchase of Sky Italia and a majority holding in Sky Deutschland, in a move which created a pan-European pay-TV giant.
Karen Bradley, culture minister in Britain’s conservative government, must now decide whether to refer Murdoch’s latest Sky takeover to media watchdog Ofcom.
The main opposition Labour party has raised objections to the deal and called upon regulators to examine the deal.
Additional reporting by Peter Bodkin
Written by AFP and posted on Fora.ie
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I cant wait to get rid of Sky. A rip off now
@ Just some Guy..have you done it already..who’s stopping u..
Don’t get yourself an A95X from Amazon, install Mobdro, Kodi and Live Net TV. And for God’s sake, whatever you do, don’t use them, because that would be illegal.
Oh great it’s the tell me how I should fell news from now on
Open box is all hot need :-)
That’s alright if you have decent broadband. No such luck here in rural Ireland
@John Reese: there are Freesat boxes that work off your satellite dish
Only need a low internet for other things
Thank God for live streaming.
The world’s longest serving CEO, he’s been in the job since 1959, refuses to believe print news is dying, doesn’t understand the digital economy or the Internet: where could this possibly go wrong ?
All those that think RTE is a bad idea… i hope you’re taking note. BBC and RTE are a dying breed we should protect them with vigour.
Well RTE sucks balls, so…
You mean BBC and RTE give the truth because they get a license fee and Sky news and Fox are totally biased
@Old Gabby Johnson:
Agree with you on the BBC. Superb production. I’d actually pay a subscription to watch programmes such as David Attenborough’s Planet Earth series.
RTE?
Personally I can live without it.
To be fair RTE wildlife series on the Shannon was excellent and probably cost what 20 miinutes of Planet Earth 2 cost
@ old Gabby Johnson..why should we..I pay a subscription fee to sky, only for sports so as I can record sports while I’m working, if I feel that I’m not getting value for money I’ll cancel..now tell me where I’m getting value for money from a licence fee when I don’t watch the channel.Rte receive 85% of the licence fee get a huge amount from advertising and expect other independent irish stations to play on a level playing field. .but pay Tubridy D’Arcy etc huge wages. .I think not..
@John003:
I’ve spent a lot of time in barges on the Barrow so really enjoyed Waterways.
Dick Warner brought the canals to life.
Bad move for old ‘Toss Face’, since most people no longer believe in his media’s propaganda hype. Apart from the date, time and the football results, I’d have nothing to do with the Murdoch media.
Mind you, Samantha Power will be looking for a new job next year and the Daily Garbage are always looking for experienced talent.
I wish that were true. If anything more people are believing the rubbish his media spouts.
For “a global leader in content creation”, read, “we make it up”.
As an Englishman, I find it a personal shame and testament to HM Government’s lack of balls that this festering gargoyle isn’t in prison having piss served with his food. Along with his rotten son and that foul hag Rebekah Brooks. That oxygen thief currently mutilating the NHS should also be behind bars – as the former Culture Secretary it was he who tried to push though the last takeover attempt, shamelessly flouting his ministerial duties and acting as a News Corp lapdog instead.
Sky news is going mini tabloid now
SKY will be the limit now….
More price hikes for sky subscribers.
It’s a new dawn for “false news”
And so freedom of the Press continues to die.
Saorview combi :)
Saorview is one thing, the irish channels with an aerial. Freeview would be the uk version (saor is irish for free) which you get via satellite. A combi box receives both but requires an aerial and a dish (the same direction as sky, astra 28.2 east) Just saying…
Fox News mk2
Should not be aloud in the EU
Like Girls Aloud ?
Well, that will be the end of…… Oh, wait!
At least the journal won’t be taken over
Upgrade to Fox Box.
I hope they buy TV3 and make Ian O Doherty a presenter. Time for a Fox-type channel to counterbalance with liberal MSM
Fox are a great channel.
That’s the end of Claire Tomlinson so…..
State owning TV stations which you have to fund by law = good. Private individual owning TV station that you don’t have to fund = wrong?
have your say