BSkyB secures £4.9bn for Sky Europe deal
By Sara Kimberley, campaignlive.co.uk, Friday, 25 July 2014 07:55AM
BSkyB has secured a £4.9 billion deal to takeover Sky Italia and Sky Deutschland, to create Sky Europe.
Sky will pay £2.45 billion for Sky Italia, £2.07 billion of which will be paid in cash with the remaining balance to be paid through the transfer of its 21% stake in National Geographic Channel International to 21st Century Fox for £382 million.
Sky will pay £2.9 billion in cash for Sky Deutschland, valuing the business at €6.75 per share.
BSkyB began discussions in May about the potential acquisition of 21st Century Fox's 100% stake of Sky Deutschland and 57.4% stake in Sky Italia.
The acquisition will make Sky the number one pay TV provider in three of the largest markets in Europe, reaching 20 million customers, nearly doubling its customer numbers.
21st Century Fox owns the 39.1 per cent of Sky previously owned by News Corporation. 21st Century Fox owns all of Sky Italia and 57 per cent of Sky Deutschland.
In addition, BSkyB released it annual results which show while revenue rose by 7%, pre-tax profits fell to £1.2bn from last year's £1.26bn.
Growth cames from Sky Go, which increased by 19%, while its On Demand usage grew threefold, reaching over half of its customers. TV generally performed well, with the company adding twice as many news customers.
The company’s £217 million one-off step up in Premier League costs also paid off with Sky Sports viewing shares reaching a seven-year high.
This article was first published on campaignlive.co.uk
- SENIOR ACCOUNT MANAGER - INTEGRATED B2B AGENCY Live Recruitment Negotiable, London
- Direct Marketing Executive Stopgap £26000 per annum, London
- Account Manager- Integrated Creative Agency Spectrum 360 Recruitment £26k - £33k, London (Central), London (Greater)
- PROJECT MANAGER - LONDON - £30-40K + BENEFITS Salt £30000 - £40000 per annum + Benefits, London
- Brand Manager Ball & Hoolahan £42,000 + Car/Car Allowance, London (Central), London (Greater)
- Oreo eclipses The Sun in celestial stunt
- Katharine Viner becomes first female editor-in-chief of Guardian News & Media
- Why Viacom spent £120m extending Channel 5's Big Brother deal for three more years
- Tesco media review pits Initiative against MediaCom and ZenithOptimedia
- Comparethemarket.com offers two for one cinema tickets with Meerkat Movies
- Google's European leader says viewing habits are 'changing dramatically'