This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/2014/jul/25/bskyb-buy-sky-italia-deutschland-fox
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| BSkyB to buy Sky Italia and Sky Deutschland for £4.9bn cash | BSkyB to buy Sky Italia and Sky Deutschland for £4.9bn cash |
| (about 1 hour later) | |
| BSkyB is to become a pan-European broadcasting company after agreeing to buy Sky Italia and Sky Deutschland from their parent group, Fox, for a combined £4.9bn in cash. | BSkyB is to become a pan-European broadcasting company after agreeing to buy Sky Italia and Sky Deutschland from their parent group, Fox, for a combined £4.9bn in cash. |
| Rupert Murdoch's 21st Century Fox will maintain its 39% stake in the enlarged Sky, which will bring together 20 million customers in three of Europe's richest economies. | Rupert Murdoch's 21st Century Fox will maintain its 39% stake in the enlarged Sky, which will bring together 20 million customers in three of Europe's richest economies. |
| In the biggest shake-up since the satellite broadcaster was created 24 years ago through the merger of Murdoch's Sky with British Satellite Broadcasting, the British group will also sell its 21% stake in the National Geographic Channel International to 21st Century Fox for £382m. | In the biggest shake-up since the satellite broadcaster was created 24 years ago through the merger of Murdoch's Sky with British Satellite Broadcasting, the British group will also sell its 21% stake in the National Geographic Channel International to 21st Century Fox for £382m. |
| "This transaction will create a world-class, multinational pay TV business with enhanced headroom for growth and immediate benefits of scale," said the Sky boss, Jeremy Darroch. "The three Sky businesses are leaders in their home markets and will be even stronger together. By creating the new Sky, we will be able to use our collective strengths and expertise to serve customers better, grow faster and enhance returns." | "This transaction will create a world-class, multinational pay TV business with enhanced headroom for growth and immediate benefits of scale," said the Sky boss, Jeremy Darroch. "The three Sky businesses are leaders in their home markets and will be even stronger together. By creating the new Sky, we will be able to use our collective strengths and expertise to serve customers better, grow faster and enhance returns." |
| Sky will issue 156m shares to fund the deal, equivalent to nearly 10% of its existing free float. Fox has committed to buying enough of these shares to maintain its current holding in Sky. | |
| During his years as chief executive and chair of BSkyB, Rupert's son James argued – in public at least – that there were few synergies between Sky's European businesses. But on Friday he welcomed the merger. | During his years as chief executive and chair of BSkyB, Rupert's son James argued – in public at least – that there were few synergies between Sky's European businesses. But on Friday he welcomed the merger. |
| "We have always believed that a combination of the European Skys would create enormous benefits for the combined business and for our shareholders," said James, who is co-chief operating officer of 21st Century Fox. "Ultimately, a pan-European Sky is good for customers, who will benefit from the accelerated technological innovation and enhanced customer experience made possible by a fully integrated business." | "We have always believed that a combination of the European Skys would create enormous benefits for the combined business and for our shareholders," said James, who is co-chief operating officer of 21st Century Fox. "Ultimately, a pan-European Sky is good for customers, who will benefit from the accelerated technological innovation and enhanced customer experience made possible by a fully integrated business." |
| The European deal will see Sky acquire Fox's 57.4% interest in the German business for £2.9bn, equivalent to €6.75 (£5.35) per share, a slight premium to Thursday's closing price of €6.66. The same sum has been offered to minority shareholders, although it may not be enough to sway those who are insisting Sky pay a clear premium before they relinquish their holdings. | The European deal will see Sky acquire Fox's 57.4% interest in the German business for £2.9bn, equivalent to €6.75 (£5.35) per share, a slight premium to Thursday's closing price of €6.66. The same sum has been offered to minority shareholders, although it may not be enough to sway those who are insisting Sky pay a clear premium before they relinquish their holdings. |
| Sky Italia is being acquired for £2.45bn, made up of £2.07bn in cash and the balance in the form of the National Geographic stake. | Sky Italia is being acquired for £2.45bn, made up of £2.07bn in cash and the balance in the form of the National Geographic stake. |
| If all of Sky Deutschland's minority holders sell up, the deal could net Fox up to €7bn (£5.5bn) with which to fund an even more ambitious plan – the takeover of Time Warner. News broke last week of an unsolicited $73bn (£43bn) offer for the Hollywood powerhouse behind Harry Potter and Game of Thrones. Combining Time's HBO television production house and Warner Brothers with Fox would create a content giant capable of holding its own against the growing distribution might of Apple and Google's electronic entertainment stores, but with a competitively contentious 30% of US box office receipts. | |
| Over the last five years, BSkyB has more than doubled its paid-for subscription product base and increased revenues by 43%, and says the expanded business will have a similar opportunity for growth, with 97m addressable households, 66m of which have yet to take pay TV. | Over the last five years, BSkyB has more than doubled its paid-for subscription product base and increased revenues by 43%, and says the expanded business will have a similar opportunity for growth, with 97m addressable households, 66m of which have yet to take pay TV. |
| The acquisition will double Sky's customer base from 11.5m in the UK to 20m when it includes Germany, Austria, Switzerland and Italy; and will increase group revenues from £7.6bn to £11.2bn. | The acquisition will double Sky's customer base from 11.5m in the UK to 20m when it includes Germany, Austria, Switzerland and Italy; and will increase group revenues from £7.6bn to £11.2bn. |
| Sky expects to save £200m in annual costs from jointly buying programmes, combining IT systems, producing live events, commissioning, rationalising suppliers and, over time, in product and set top box development. | Sky expects to save £200m in annual costs from jointly buying programmes, combining IT systems, producing live events, commissioning, rationalising suppliers and, over time, in product and set top box development. |
| In annual results released on Friday, Sky beat City forecasts on profits, reporting earnings per share of 60p against an expected 57.6p, while revenues came in as forecast at £7.6bn, an increase of 5% on last year. | In annual results released on Friday, Sky beat City forecasts on profits, reporting earnings per share of 60p against an expected 57.6p, while revenues came in as forecast at £7.6bn, an increase of 5% on last year. |
| Despite the battle for customers with BT and its new sports channels, Sky added 50,000 broadband customers in the most recent quarter, ending 30 June, and 76,000 television customers. | Despite the battle for customers with BT and its new sports channels, Sky added 50,000 broadband customers in the most recent quarter, ending 30 June, and 76,000 television customers. |