Sky rejects News Corporation takeover bid

British Sky Broadcasting (BSkyB) has rejected a bid from Rupert Murdoch’s News Corporation to take full control of the satellite broadcaster.

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News Corporation, which also owns The Times, The Sun and News of the World newspapers, has made an offer worth 700p a share, valuing BSkyB at around £12bn. The company currently owns 39.1% of BSkyB.

BSkyB has rebuffed this offer saying it was too low. However, talks between the two parties are continuing, with the aim of sealing a deal worth at least “in excess of 800p” a share.

News of the bid has pushed shares in BSkyB up by 21%.

Earlier this month, BSkyB aquired the Virgin Media Television unit for £160m, giving Sky ownership of the channels Living, Livingit, Challenge, Challenge Jackpot, Bravo, Bravo 2 and Virgin1.

The company’s marketing spend is on course to hit £1bn this year as the pay-TV company looks to build on a 76% bump in take up of its high definition television service.

The pay-TV company reported pre-tax profit increased to £707m in the last three quarters, up from £339m in the same period a year earlier, with its subscriber base nearing 10 million.

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