Sky and 21st Century Fox reach £18.5bn takeover deal

An agreement has been reached for 21st Century Fox’s takeover of broadcaster Sky.

The BBC reported on Thursday that Sky has been valued at £18.5bn and its shareholders will receive £10.75 for each share.

Some shareholders are not in favour of the takeover as the bid undervalues Sky in the wake of the weak pound following the Brexit vote.

Rupert Murdoch abandoned plans through his other company News Corp in 2011 to buy the remaining shares in the broadcaster following the phone hacking scandal at his British newspapers, including at his now defunct News of the World.

On Friday he bid for the remaining 61% of Sky through his film and TV studio 21st Century Fox.

The takeover is subject to regulatory and government approval.

Fox owns broadcaster Fox News and the film studio, while News Corp owns The Times, The Sunday Times, the Sun, the Sun on Sunday, and Talksport.

Sky owns TV operations in the UK as well as in Italy, Germany and Austria.

Shares in Sky were down 0.89% to 974.79 at 1318 GMT.