Fox in Late Stage Talks to Buy Sky

Some issues remain in $14B deal for remaining interest in U.K. satellite company 12/09/2016 12:45 PM Eastern

Rupert Murdoch’s 21st Century Fox is in late stage discussions to take in the remaining stake in British satellite TV service provider Sky UK it didn’t already own, offering about $14 billion.


According to reports, Fox has agreed to pay about $13.52 per share for the remaining 61% of Sky UK it doesn’t already own, a 36% premium to its closing price on Dec. 8. Fox already owns 39% of the satellite company. 


Fox had tried to consolidate the satellite company in 2011 in a deal valued at $11.5 billion, but a phone-hacking scandal involving its News of the World British tabloid forced it to abandon the deal. As the dust has settled over the scandal in subsequent years, some analysts have said the time is ripe to restart discussions.


In a statement, Sky said its independent directors have agreed to the all-cash deal, but that “certain material offer terms remain under discussion.”


In 2014 Fox sold its interest in sister satellite TV providers Sky Italia and Sky Deutschland to Sky U.K. for about $9.3 billion. The deal created a European satellite giant with about 21 million customers in the U.K., Italy and Germany.



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