Murdoch Consolidates European Pay-TV Assets Under BSkyB in £7.4 billion deal

BSkyB has agreed to pay up to £7.4 billion to acquire its European sister companies, opening the way to the biggest transformation in its 25-year history.

The move will create one of Europe’s largest pay-TV providers, with the ability to invest more in internet technology and potentially to bid for sports and entertainment rights on a continent-wide basis. The deal comes after more than two months of negotiations with Rupert Murdoch’s 21st Century Fox, which will receive $7.3 billion from the deal as it looks to invest in US content business. BSkyB will pay £2.45bn for Fox’s 100 percent stake in Sky Italia, the Italian pay-TV business that has lost more than 200,000 customers since 2011. That includes £2.1 billion in cash and the transfer of BSkyB’s 21 per cent stake in the National Geographic Channel. BSkyB will also pay £2.9bn for Fox’s 57 percent stake in Sky Deutschland, the German operator. It will also offer €6.75 for each remaining Sky Deutschland share. The deal will require approval by a majority of BSkyB’s independent shareholders, because Fox owns 39.1 percent of the UK pay-TV company and is therefore considered a related party. It may also face scrutiny from European regulators.