Sky has agreed a full takeover by Rupert Murdoch’s 21st Century Fox, which values the broadcaster at over £18bn.
21st Century Fox, which already owns a 39% stake in Sky, is to pay £10.75 per share in cash, a premium of 36% to the broadcaster’s closing price on 8th December.
In a statement, Sky said the directors of Sky and 21st Century Fox have reached agreement on the offer price.
Sky added that ‘certain material offer terms remain under discussion and there can be no certainty that an offer will be made by 21st Century Fox, nor as to the terms of any such offer.’
“The Independent Directors, who have received financial advice from Morgan Stanley, PJT Partners and Barclays, have indicated to 21st Century Fox that they are willing to recommend the Proposal to Sky shareholders, subject to reaching agreement on the other terms.”
Sky’s board has formed a committee to consider the terms of the proposal. The committee comprises Martin Gilbert, Andrew Sukawaty, Jeremy Darroch, Andrew Griffith, Tracy Clarke, Adine Grate, Matthieu Pigasse and Katrin Wehr-Seiter.
Rupert Murdoch tried to take control of Sky five years ago, but the deal was thwarted by the phone hacking scandal.
21st Century Fox already has a 39% stake in Sky.
21st Century Fox also owns 50% of one of the world’s biggest production companies, Endemol Shine. The media conglomerate also owns 20th Century Fox, FX Networks, Fox Television and has stake in National Geographic and Hulu.
Share this story