BSkyB is reportedly planning to complete its takeover of sister companies Sky Italia and Sky Deutschland in the coming weeks, in a deal that would financially boost parent firm 21st Century Fox as its attempts to buy Time Warner.
According to a Sunday Times report, Sky could seal the takeover of the two firms in the next two weeks, in a move that would create a European pay-TV powerhouse and provide Fox with a “windfall of more than €8 billion (US$10.8 billion)”.
A separate Bloomberg report said that Fox’s 100% stake in Sky Italia and 57% stake in Sky Deutschland could fetch around €10 billion. Fox, which Rupert Murdoch (pictured) heads as chairman and CEO, also owns a 39% in BSkyB.
Last week Time Warner rejected a takeover bid by Fox that was valued at roughly US$80 billion.
According to Bloomberg, BSkyB’s buyout of Fox’s Sky Deutschland and Sky Italia assets could give Fox additional cash for its Time Warner bid, without the need to up its borrowing.
BSkyB first confirmed that it was in preliminary talks about acquiring Fox’s 57% stake in Sky Deutschland and Sky Italia to create a pan-European pay TV giant back in May.
The deal could create a European pay TV giant with 18.5 million subscribers that would have considerable power in negotiating content deals, including sports rights.