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Murdoch's Fox agrees deal to buy Sky for $14.6 bln

Thursday, December 15, 2016 - 01:07

Rupert Murdoch's Twenty-First Century Fox says it has agreed to buy European pay-TV firm Sky for $14.6 billion. Ciara Lee reports.

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It's official: 21st Century Fox is bidding for Sky. Rupert Murdoch's firm tabling a firm cash offer that values the British broadcaster at nearly eleven pounds a share. It wants to snap up the 61 percent of Sky it doesn't already own. But plenty of hurdles lie between here and success. Major pension funds, which own large chunks of Sky shares, have already sounded a warning. 75 percent of independent shareholders - including Standard Life and Royal London - will have to OK the takeover. The Local Authority Pension Fund saying the deal must be priced right, but analysts at Citi bank are calling it a lowball bid. Regulators also lurking. Victory would give Murdoch control of a pay TV network with 22 million customers spanning the UK, Ireland, Austria, Germany and Italy. Some politicians fear that would give him too much control over media. But the mogul is likely to prove determined. A similar bid failed in 2011 after Murdoch's papers became embroiled in a row over phone hacking. This time, some investors say, he'll want to win no matter what the cost.

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Murdoch's Fox agrees deal to buy Sky for $14.6 bln

Thursday, December 15, 2016 - 01:07