LONDON (Brand Republic) – Rupert Murdoch is moving closer toward seeking backing from financial investors for his digital holding company, Sky Global Networks, as opposed to strategic partners.
Initially, Murdoch held discussions with leading technology and media companies about taking minority stakes in Sky Global. These included Microsoft, Yahoo and Vivendi.
The company was formed earlier this year when Murdoch folded BSkyB in the UK and Asia’s Star TV into Sky Global. A flotation on the New York Stock Exchange is planned.
Murdoch is now seeking to underpin the IPO with backing from a number of financial institutions. A flotation could value the company at between $35bn and $5bn.
News Corp is thought to be looking to attract interest from financial institutions and media investors such as Liberty Media.
However, discussions with Vivendi, which owns a 20% stake in BskyB are ongoing. The French media and utility company is thought to be interested in folding this stake into Sky Global in return for a 10% to 12% stake in the company.