The media group of Rupert Murdoch 21st Century Fox (NASDAQ:FOXA) has struck a deal to purchase Sky PLC (OTCMKTS:SKYAY), which is one of the leading pay television providers in the world. The deal is worth $23.3 billion.
According to the agreement, 21st Century is going to pay $13.50 for each share of Sky. Incidentally, the Murdoch-led business already owns 40 percent of Sky. With this deal, Fox will now have complete control of the business.
Based out of New York City, 21st Century Fox is currently the fourth largest media conglomerate in the world after Comcast, The Walt Disney Company, and Time Warner. It was a spinoff of News Corporation. Presently, the business employs more than 20,000 workers and has a net operating income of $9.84 billion. The total assets are more than $50.05 billion. Their other assets include Blue Sky Studios, National Geographic Partners, YES Network, and STAR TV.
Sky, on the other hand, based out of London, UK, is an on-demand internet streaming media, satellite broadcasting, telephone, and broadband company. The business has more than 22 million customers in European markets – Germany, Italy, Ireland, Austria, and the United Kingdom.
The Latest Attempt of Rupert Murdoch
Murdoch tried to take complete control of Sky back in 2011 as well, but that attempt was unsuccessful after there were reports that phones were being hacked at his British newspapers. Back then, News Corporation had made a $12 billion offer for the remaining portion of Sky that 21st Century Fox didn’t own already.
James Murdoch, his younger son, was the chairman of Sky from 2007 to 2012. The scandal became so big that James even had to step down. He has however returned to assume the top position since then.
At this time, Rupert Murdoch is the co-executive chairman of 21st Century Fox (NASDAQ:FOXA), sharing the position with Lachlan, his other son. James Murdoch was the CEO, a position he stepped down from earlier this year.
Intense Scrutiny Likely From the Regulators
It was learned that both the parties are currently working on the final stages of the deal presently. However, regulators are likely to scrutinize it intensely once everything is finalized. Regulators in the UK were not available for comments immediately. The British government, though, had approved the deal last time in 2011.
The market reacted positively to this news. The Sky PLC (OTCMKTS:SKYAY) stock was up 31 percent in London.