graphic
News > International
BSkyB links with Kirch
December 6, 1999: 4:46 a.m. ET

Murdoch's U.K. unit joins forces with German pay-TV giant in $1.5B deal
graphic
graphic graphic
graphic
LONDON (CNNfn) - Rupert Murdoch's BSkyB is buying a 24 percent stake in Germany's leading pay-TV company, KirchPayTV, for $1.5 billion, the companies announced Monday.
    BSkyB (BSY) is 40 percent owned by Murdoch's News Corp., and is the largest pay-television operator in Britain.
    Breaking into Continental European television has been one of Murdoch's goals for some time, although his efforts have not always been successful. In particular, attempts to build partnerships in France have foundered upon a dispute over management control with Vivendi (PEX), which runs Europe's largest pay-TV company, Canal Plus (PAN). Persistent rumors have made BSkyB a target of Vivendi, which owns a 25 percent holding in the U.K. firm.
    BSkyB has long been viewed as Kirch's most likely partner, offering a way for the British company to enter Europe's largest television market. While 33 million homes in Germany have a television, Kirch has 2 million subscribers to its satellite and cable offerings.
    BSkyB and privately-owned KirchGruppe, parent of KirchPayTV, said they aim to sell shares in the pay-TV company to the public in 2003.
    "This acquisition gives BSkyB the opportunity to acquire a significant foothold in the German market," BSkyB Chief Executive Tony Ball said in a statement.
    BSkyB is paying 1 billion marks ($512 million) in cash and issuing 78 million of its shares to KirchPayTV to fund the deal, giving a total value of 2.9 billion marks ($1.5 billion). That leaves KirchPayTV with a 4 percent stake in The U.K. company.
    The tie-up is subject to approval from European antitrust regulators. The European Commission in 1998 blocked a tie between Kirch and German rival Bertelsmann.
    KirchGruppe is one of the most powerful media firms in Germany, owning large chunks of the free-to-air television business as well as publishing assets. Back to top

  RELATED STORIES

Murdoch opposes TV tie - Oct. 15, 1999

BSkyB 2Q profit in line - Aug. 11, 1999

  RELATED SITES

BSkyB

KirchGruppe


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.