21st Century Fox in Bid Approach for Sky

December 12, 2016

US media giant 21st Century Fox has made a takeover approach for Sky that values the company at £18.5bn.

21st Century Fox, order which is owned by media tycoon Rupert Murdoch, already owns 39.1% of the British broadcaster, and has made an offer to purchase the remaining 60.1% for around £11.25bn.

Sky have confirmed the companies have reached agreement on an offer price of £10.75 a share, but added that negotiations continue regarding the terms of the deal.

In the wake of the British referendum result on June 23 which indicated a majority supported Britain leaving the European Union, the Pound Sterling has dropped 16% against the US Dollar, making investment in British companies more financially viable for foreign companies.

Fox Chief Executive James Murdoch, son of owner Rupert, was named Chairman of Sky earlier this year.