LONDON/PARIS: Britain’s BSkyB has agreed to pay $9bn to buy Rupert Murdoch’s pay-TV companies in Germany and Italy, taking its hunt for growth into Europe by creating a media powerhouse with 20 million customers.
BSkyB, in which Murdoch’s 21st Century Fox is also the largest shareholder, will pay for the deal using cash, debt, its stake in a TV channel and a placing
of shares that represents around 10 percent of its issued
The deal adds to a flurry of consolidation in the global media sector as traditional entertainment companies seek to bulk up to compete against more nimble Internet rivals.
Fox is expected to use the proceeds to fuel its pursuit of Time Warner, which recently rejected Fox’s initial $80bn bid.
BSkyB had flagged a possible deal for Sky Deutschland and Sky Italia in May. Reuters