360° Coverage : Murdoch's $14B Plan For European Dominance Through BSkyB

2 Updates

Murdoch's $14B Plan For European Dominance Through BSkyB

May 13 2014, 4:41pm CDT | by

Perpetually in motion, octogenarian billionaire Rupert Murdoch is shaking up the chess pieces in an attempt to consolidate his pay-TV empire in Europe.  Through BSkyB, Britain’s largest pay-TV...

Filed under: news

 
 
 

19 weeks ago

Murdoch's $14B Plan For European Dominance Through BSkyB

May 13 2014, 4:41pm CDT | by

Perpetually in motion, octogenarian billionaire Rupert Murdoch is shaking up the chess pieces in an attempt to consolidate his pay-TV empire in Europe.  Through BSkyB, Britain’s largest pay-TV company, Murdoch is mulling a potential $14 billion merger of his assets in Italy and Germany that will give him approximately 20 million subscribers along with the rights to three of the world’s most important soccer leagues.  The move could set the stage for a billionaire showdown with John Malone, who’s Liberty Global has about 25 million customers across 12 countries in Europe.

In a press release, “preliminary discussions” were officially announced between BSkyB and 21st Century Fox, two companies controlled by the Murdoch family, regarding Sky Italia and Sky Deutschland.  The idea would be to acquire Fox’s controlling 57% stake in Germany, along with a full buyout offer to minority shareholders, and the totality of Sky Italia, which is fully under Fox’s control.  “BSkyB believes at the right value, this combination would have the potential to create a world-class multinational pay TV group,” the company said.

This would allow Murdoch to group its 10.5 million subscribers in Britain and Ireland with 3.7 million in Germany and Austria, and 4.8 million in Italy, in a deal valued at €10 billion by Reuters.  In Britain, BSkyB counts with a dominant position, with 57% of the market, which would be complemented with a 24% share in Italy and 19% in Germany.  The UK would contribute more than two-thirds of revenues and nearly 90% of operating profit.

Not only will Murdoch be fusing his European pay-TV assets, he will also be concentrating one of the largest portfolios of top-notch soccer leagues in the world.  With the value of TV rights for sports going through the roof, several major European leagues have recently negotiated juicy contracts.  The English Premier League signed a three season deal worth $2.6 billion per season, with BSkyB and BT paying more than $5 billion to secure the domestic rights.  In Germany, the Bundesliga inked a deal with Murdoch’s Fox for five years said to take domestic revenues to $907 million and nearly doubling international revenue to $150 million per season.

Despite a decline in on-pitch performance, the Italian league continues to be one of the most lucrative out there, with a $1.3 billion deal set to expire in 2015, as Bobby McMahon explained in Forbes’ soccer valuations package.  The Serie A, as the Italian league is called, recently moved to a centralized selling model, and negotiations for a new three year deal should kick off soon.

Murdoch’s attempt to fuse his pay-TV holdings would represent a challenge to Liberty Global, which counts with 25 million subscribers as of the end of the first quarter.  Malone’s Liberty is present in 12 countries across Europe including the UK, Ireland, Austria, and the Netherlands.  The company spent almost $50 billion in M&A in Europe over the past few years, including $6.8 billion for Dutch cable company Ziggo, according to Bloomberg.

Still, Murdoch is playing his cards close to his vest.  On Monday, 21st Century Fox released a two-line press release that acknowledged “internal discussions” that have “from time to time […] included BSkyB.”  Fusing his cable companies would allow him to streamline operations and leverage with the power of its increased subscriber base.  With three of the major five soccer leagues in his portfolio, Murdoch can mount a strong challenge for Malone.
/>

Countries With The Richest Soccer League TV Deals

 
Update
2

4 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slas ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

4 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

World's fourth largest sea dried up completely: NASA
New York, Sep 30 (IANS) Aral Sea - the giant lake between Kazakhstan in the north and Uzbekistan in the south - has dried up completely, says NASA.
 
 
How some ancient stars met with an unusual death
New York, Sep 30 (IANS) In a first, researchers have discovered that certain primordial stars - those between 55,000 and 56,000 times the mass of our Sun - may have died unusually by exploding completely and leaving no remnant black hole behind.
 
 
Man dies two years after being struck by stray bullet
Santiago, Sep 30 (IANS/EFE) A 23-year-old Chilean man died after two years in a persistent vegetative state as a result of being shot in the head unintentionally by a law enforcement officer during a student protest in October 2012, his family said Monday.
 
 
Over 2,000 Germans volunteer to help battle Ebola
Addia Ababa, Sep 29 (IANS) Over 2,000 Germans have heeded the government's call to register as volunteers for deployment to fight the Ebola virus disease outbreak in Guinea, Liberia and Sierra Leone, the African Union (AU) said in a statement Monday.
 
 
 

Latest from the Network

Missing Thai helicopter crashes in Myanmar
Yangon, Sep 30 (IANS) A Thai rescue helicopter has crashed in Myanmar's northern Kachin state, authorities said. The army and regional police were trying to access the crash site, reported Xinhua Tuesday. The...
Read more on Politics Balla
 
Text of the India-US vision statement
Washington, Sep 30 (IANS) As President Barack Obama and Indian Prime Minister Narendra Modi met for the first time over dinner, the White House issued a vision statement for the US-India Strategic Partnership: "Chalein...
Read more on Politics Balla
 
Asiad TT: Indian men's doubles teams in pre-quarters
Incheon, Sep 30 (IANS) The Indian men's table tennis doubles teams advanced to the pre-quarterfinals after winning their respective matches of the 17th Asian Games at the Suwon Gymnasium here Tuesday. First up, the...
Read more on Sport Balla
 
Indian boxer Sarita Devi settles for Asiad bronze
Incheon, Sep 30 (IANS) Indian boxer L. Sarita Devi settled for silver after losing the women's light weight (57-60kg) semi-final of the 17th Asian Games here Tuesday. The 32-year-old Indian lost 0-3 in an unanimous...
Read more on Sport Balla
 
Liam Gallagher struggling to 'secure funds' for child support
Liam Gallagher is ''struggling to secure funds'' for a support settlement with the mother of his love child. The Oasis frontman - whose five-year marriage to Nicole Appleton collapsed after it emerged last year he had...
Read more on Celebrity Balla
 
Robert Downey Jr: Fatherhood is 'terrifying'
Robert Downey Jr finds fatherhood ''terrifying''. The 49-year-old actor - who has a two-year-old son, Exton, with his pregnant wife Susan - has confessed to being ''exhausted'' by the tot and found it scary when the...
Read more on Celebrity Balla
 
Australian police detain one terror suspect
Sydney, Sep 30 (IANS) Australian police during the counter-terror raids in the country Tuesday detained one man on charges of engaging in terrorism-related activities. The Australian Federal Police (AFP) and Victorian...
Read more on Politics Balla
 
World's fourth largest sea dried up completely: NASA
New York, Sep 30 (IANS) Aral Sea - the giant lake between Kazakhstan in the north and Uzbekistan in the south - has dried up completely, says NASA. In the early 1900s, the Aral Sea was the fourth largest lake in the...
Read more on Politics Balla
 
Fiji parliament to hold first sitting Oct 6
Suva, Sep 30 (IANS) Fiji, home to a large ethnic Indian population, is likely to hold its first sitting of parliament Oct 6, media reported. "Fiji is likely hold its first sitting in parliament since the 2006 military...
Read more on Politics Balla
 
Modi sips warm water at Obama dinner
Washington, Sep 30 (IANS) Prime Minister Narendra Modi, fasting for the Hindu festival of Navratri, just sipped warm water at a dinner hosted in his honour by President Barack Obama ahead of their formal bilateral...
Read more on Celebrity Balla