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Not content with dominating the UK, British pay-tv provider Sky has apparently turned its eye to Europe. The report...
Not content with dominating the UK, British pay-tv provider Sky has apparently turned its eye to Europe. The reported deal between BSkyB and 21st Century Fox will see the TV giant pay Fox a total of £4.9 billion, or 8.3 billion in US dollars, to purchase Sky Italia and the majority share (57 per cent) of Sky Deutschland. If the deal goes through, BSkyB will end up with 20 million European customers.
Although initiated by BSkyB, the deal will prove lucrative for Fox owner and media mogul Rupert Murdoch. Aside from owning Sky Italia and Sky Deutschland outright, Murdoch also holds a 39 per cent share in BSkyB, which makes the deal an effective purchase of sister companies. The changing of hands will line Murdoch’s coffers, better preparing him for a reported $80 billion takeover of Time Warner.
Sky has risen to great heights in the UK, seeing its user base double in the past year to reach over 5 million connected homes. Although facing pressure from rivals BT and Virgin Media, its Sky Go service has enticed users to pledge their trust to Sky, resulting in over 5.5 million registered subscribers. Tapping new markets in Germany and Italy where people are unaccustomed to paid TV and streaming services may be a bit of a gamble, although the market is ripe for the picking.