By Jason Theodorou
Rupert Murdoch is pursuing an offer for the whole of BSkyB, intent on taking over the 61% of shares that are not currently owned by his company News Corporation. BSkyB initially rejected an offer of 700p a share, arguing that the figure should be closer to 800p a share.
BSkyB and NewsCorp are investigating further the regulatory process that would be necessary for NewsCorp to assume complete control of Sky. If it proves successful, the takeover is expected to cost Murdoch’s company close to £8 billion.
BSkyB’s profits are expected to rise from £638 million to £1.1 billion over two years. A factor which makes BSkyB an attractive addition to the News Corp is BSkyB’s healthy subscription revenues, built in part on investment in Premier League rights.
The move is likely to need approval from regulators in both the UK and the EU, with BSkyB pushing for a higher offer than 700p to keep shareholders happy – as the process of seeking approval from regulators could take up to 18 months.
Join us on